Pakistan’s tax landscape is set to undergo another round of transformation as the Federal Board of Revenue (FBR) has issued the draft of its new electronic income tax return forms for individuals as well as companies. The move comes under the government’s ongoing push to streamline tax compliance and digitize documentation, although many taxpayers might find the notion of “simplification” somewhat ironic given the length and scope of the new forms.
On Tuesday, the FBR formally released two statutory regulatory orders: S.R.O. 1212(I)/2025 and S.R.O. 1213(I)/2025. Under S.R.O. 1212(I)/2025, the tax authority rolled out a draft version of the electronic income tax return form for individuals, labeled as the “Simplified Electronic Return for Individuals.” However, despite the name, the document stretches across an extensive 25 pages, raising eyebrows among professionals who argue that the format may still be daunting for the average filer.
The new form is slated for implementation starting tax year 2025 and represents part of the FBR’s strategy to enhance electronic tax administration. Simultaneously, the FBR also issued a separate draft income tax return form specifically designed for corporate entities, reflecting a parallel effort to standardize and digitize reporting requirements for companies operating in Pakistan.
In addition to the draft forms, S.R.O. 1213(I)/2025 outlines proposed amendments to the existing Income Tax Rules, 2002. The FBR is undertaking these modifications under powers conferred by section 237 of the Income Tax Ordinance, 2001, aiming to align procedural rules with the new electronic systems and compliance expectations.
To ensure that these significant changes do not bypass stakeholder scrutiny, the FBR has initiated a brief public consultation process. Tax professionals, businesses, and individual taxpayers have been invited to review the draft documents and submit any objections or recommendations within seven days from their publication in the official Gazette. The FBR has assured that all feedback received during this period will be carefully examined before finalizing the new formats and regulations.
This latest effort is part of a broader agenda by Pakistan’s revenue authorities to widen the tax net, promote transparency, and facilitate digital tax compliance. Over recent years, the FBR has pushed multiple initiatives centered on electronic filing and documentation, aiming to reduce manual paperwork and curb opportunities for tax evasion. However, the sheer length and technical nature of the new “simplified” return forms might pose fresh challenges for ordinary taxpayers who lack professional tax support.
Tax analysts note that while comprehensive data capture is essential for robust compliance and future audit trails, the FBR will also need to ensure that the process remains manageable for the broader population. Many small business owners and salaried individuals could struggle to navigate such extensive forms without specialized help, potentially undermining the goal of self-service digital filing.
Nonetheless, this draft phase offers an opportunity for taxpayers and tax practitioners to voice concerns and suggest improvements, potentially shaping the final version into a more balanced instrument. As Pakistan continues to modernize its tax ecosystem, the focus will remain on whether such reforms can genuinely deliver easier compliance and bolster public trust in the formal system without imposing an excessive administrative burden.