The Federal Board of Revenue (FBR) has officially extended the deadline for filing income tax returns for the tax year 2025 by 15 days, giving taxpayers until October 15 to comply. The announcement was made in Islamabad on Tuesday, following mounting appeals from trade bodies, professional associations, and the general public for more time to complete the filing process.
According to the notification issued by the FBR, the decision was made under Section 214A of the Income Tax Ordinance, 2001. The board highlighted that the extension is aimed at addressing the concerns raised by taxpayers and associations who requested additional time due to technical and procedural challenges in completing returns.
Just hours before the announcement, the FBR had ruled out any extension and insisted that all eligible taxpayers must submit their returns by midnight of September 30. The sudden shift in stance underscores the pressure the institution faced from various sectors, including chambers of commerce and bar associations, who argued that more time was necessary to ensure compliance.
The extension of the deadline until October 15 is expected to provide breathing space for both individual and corporate taxpayers. It also comes at a critical moment as the government pushes to increase the number of active filers, improve documentation of the economy, and meet revenue collection targets set under commitments with international lenders.
Earlier this month, the FBR had already made amendments to simplify the filing process. On the instructions of Prime Minister Shehbaz Sharif, the board removed the “estimated market value column” from the income tax return form for 2025. This move was aimed at reducing complexity and encouraging broader participation in the filing process by lowering barriers faced by citizens.
For Pakistan, increasing the number of tax filers has long been a major economic challenge. A large portion of the population remains outside the formal tax net, forcing the government to rely on indirect taxation. By extending deadlines and simplifying procedures, policymakers hope to create an environment where voluntary compliance becomes easier and less burdensome.
Tax experts believe the decision could positively impact compliance rates, as many taxpayers who were struggling to complete the process by the original September 30 deadline will now have adequate time. However, they also caution that repeated extensions in the long run can undermine discipline and encourage last-minute filing.
The FBR has also been focusing on improving its digital infrastructure to make filing more seamless. Online portals and e-filing systems have been enhanced over the years, but many taxpayers continue to face connectivity and system-related issues, which were part of the justification for extending the deadline this year.
The new October 15 deadline now sets the stage for an intense two-week period, during which the FBR will attempt to process a significant volume of returns while encouraging more individuals and companies to step into the tax net. The development also reflects the ongoing balancing act between enforcing compliance and accommodating the practical challenges of Pakistan’s taxpayers.
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