The Pakistan Chemicals & Dyes Merchants Association (PCDMA) has raised concerns over persistent technical problems in the Federal Board of Revenue’s (FBR) IRIS system, saying the glitches are creating significant difficulties for businesses attempting to file their Sales Tax Returns within the prescribed deadlines. The association said the problems have affected the filing process for registered taxpayers and have created an additional administrative burden for businesses seeking to comply with their statutory tax obligations. According to PCDMA, taxpayers are facing difficulties caused by recent changes introduced to the IRIS system, leaving some businesses dependent on their suppliers to complete important parts of their return submissions. The association warned that such technical and procedural difficulties could expose compliant taxpayers to penalties and other consequences associated with delayed filing.
In a letter addressed to the FBR chairman, PCDMA Chairman Salim Valimuhammad called for urgent intervention by the tax authority to resolve the technical problems affecting the filing system. He specifically highlighted difficulties associated with Annex H1, titled Statement of Stock for Traders, which was introduced following the implementation of SRO 350(I)/2024. According to Valimuhammad, the requirement has resulted in a situation where many taxpayers are unable to complete their Sales Tax Returns independently and instead have to rely on suppliers to provide or submit the required information. He said this dependency has slowed down the return filing process and created difficulties for businesses across the country, particularly those attempting to meet statutory deadlines despite their willingness to remain compliant with tax requirements.
The PCDMA chairman said the issue was not confined to businesses operating in the chemical and dyes sector, but was also affecting other sales tax-registered taxpayers in Pakistan. The association represents around 750 members and is among the major trade bodies operating in the chemical sector. In view of the wider impact of the problem, PCDMA has approached the FBR with the aim of securing a practical and permanent solution rather than a temporary arrangement. Valimuhammad said the association had prepared a detailed presentation outlining the difficulties faced by taxpayers in connection with Annex H1. The presentation also includes a proposed mechanism that, according to the association, could address the issue on a permanent basis and make the return filing process more workable for taxpayers generally.
The association maintained that its request should not be viewed as an attempt to reduce or weaken tax compliance requirements. Instead, PCDMA said its objective is to remove technical and procedural obstacles that are preventing taxpayers from completing their returns within the legally prescribed timeframe. Businesses that are prepared to fulfil their tax responsibilities can still face delays when the digital filing system creates dependencies or does not function smoothly. PCDMA believes that addressing these problems would allow taxpayers to submit their Sales Tax Returns more efficiently while also helping the government receive required tax information within established deadlines. The association therefore urged the FBR chairman to give the matter priority and facilitate an early resolution.
Valimuhammad further offered the association’s assistance in providing additional clarification and technical input to help the FBR better understand the difficulties surrounding Annex H1 and develop an appropriate solution. PCDMA said its members and other affected businesses could provide practical feedback on the problems encountered during the filing process, which could assist the tax authority in improving the system. The association believes that greater attention to the operational challenges faced by taxpayers would help reduce unnecessary delays and make the digital filing process more accessible and manageable for registered businesses. Such improvements, it said, would also support businesses in meeting their reporting obligations without facing avoidable procedural complications.
A more efficient filing mechanism could reduce the administrative pressure on businesses while improving the pace at which Sales Tax Returns are submitted, according to the association. PCDMA said resolving the technical difficulties would benefit both taxpayers and the government by allowing businesses to complete their statutory requirements within the required timeframe and enabling the tax authority to receive filings more efficiently. The association has therefore called for a mechanism that addresses the underlying issue instead of requiring taxpayers to repeatedly deal with the same technical hurdles during each filing cycle.
The association expressed hope that the FBR would respond promptly to the concerns and examine the proposed mechanism for resolving the difficulties linked to Annex H1. PCDMA said a permanent solution would provide relief to sales tax-registered businesses and help establish a smoother filing process across different sectors. The association reiterated its willingness to cooperate with the FBR and provide any further technical information required to resolve the matter. It said timely action by the tax authority would help businesses fulfil their statutory obligations more effectively while supporting the broader objective of maintaining tax compliance through a more functional digital filing process.
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