KARACHI: The Karachi Tax Bar Association (KTBA) has strongly criticized the Federal Board of Revenue (FBR) for its uncompromising stance on refusing to extend the income tax return filing deadline for the Tax Year 2025, despite persistent technical glitches on the IRIS online portal.
In a detailed letter to FBR Chairman Rashid Mahmood Langrial, KTBA President Ali A. Rahim expressed deep disappointment over the Board’s “rigid and insensitive approach,” stating that the October 31 deadline lapsed while thousands of taxpayers were still struggling to submit their returns due to ongoing system failures.
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Rahim highlighted that although an FBR committee was formed on October 28 to address technical issues, many errors remain unresolved, leaving taxpayers in a state of confusion and distress. “The FBR’s decision to deny any further extension—despite technical obstacles—has caused immense frustration among taxpayers and tax practitioners alike,” Rahim said.
The KTBA letter pointed out several procedural irregularities, including the issuance of template-based (‘cyclostyle’) orders by some Commissioners Inland Revenue, unlawful conditional extensions tied to prior tax payments, and pending extension requests left undecided even after the due date.
Adding to taxpayers’ woes, KTBA noted that many individuals who filed extension applications under Section 119 have been wrongfully excluded from the Active Taxpayers’ List (ATL)—a move that deprives them of lower withholding tax rates and other statutory benefits.
The Association urged the FBR to review conditional orders, restore ATL inclusion for pending cases, and extend the filing window to ensure fairness.
KTBA reaffirmed its commitment to promoting voluntary compliance and broadening the tax base, but emphasized that these goals can only be achieved through a reliable, transparent, and taxpayer-friendly digital system.
