The Karachi Tax Bar Association (KTBA) has urged the Federal Board of Revenue (FBR) to extend the deadline for filing income tax returns for Tax Year 2026, citing the increased reporting and disclosure requirements introduced in the latest return filing process. The request was made during a meeting between KTBA representatives and FBR Chairman Rashid Mehmood Langrial in Karachi on September 9, 2026. The discussion covered several taxation and taxpayer facilitation matters, including return filing difficulties, technical problems with the IRIS system, refunds under Section 7E, digitalisation, electronic invoicing, artificial intelligence-based assessments and the Small Shopkeeper Scheme.
During the meeting, KTBA highlighted the additional time taxpayers may require to complete their returns because of enhanced reporting and disclosure requirements. The association maintained that taxpayers should be given sufficient time to understand and provide the information required under the updated filing process. The issue comes as the number of income tax returns filed through the FBR system has already exceeded the corresponding figure recorded last year. According to the information shared during the meeting, approximately 2.2 million income tax returns had been filed as of September 9, compared with 1.724 million returns during the same period last year.
The sharp increase in filings has also been accompanied by technical challenges on the FBR’s IRIS platform, which is used by taxpayers for filing returns and completing several tax-related processes. KTBA and the FBR agreed to maintain coordination to address these technical issues and facilitate taxpayers during the filing period. Continued engagement between the tax authority and the tax bar is expected to help identify problems affecting taxpayers and support smoother completion of the return filing process as the deadline approaches.
The meeting also addressed refunds related to tax collected under Section 7E of the Income Tax Ordinance. The FBR informed KTBA that a dedicated mechanism is being developed to process refunds for eligible taxpayers. According to the discussion, eligible refund claims will receive priority processing once the mechanism is in place. The development of a dedicated process is intended to provide a clearer route for taxpayers seeking refunds of amounts collected under the relevant provision.
Digitalisation and electronic invoicing were also among the key areas discussed during the meeting. KTBA welcomed the FBR’s efforts to expand digital systems across tax administration, while stressing that technological changes should be accompanied by continued taxpayer awareness and facilitation. The association’s position reflects the need for taxpayers to understand new digital requirements and have access to adequate support when dealing with electronic tax processes.
KTBA also recommended a phased transition towards faceless assessments and assessment and monitoring systems supported by artificial intelligence. The association said such systems could help minimise difficulties faced by taxpayers by reducing direct interaction during certain assessment procedures. A phased approach was recommended to allow taxpayers and tax professionals to adapt to the changes while the FBR develops and implements the required digital infrastructure.
The Small Shopkeeper Scheme was another subject discussed during the meeting. The FBR sought KTBA’s assistance in creating greater awareness about the scheme and encouraging compliance among small shopkeepers. KTBA agreed to support the awareness and compliance efforts, adding another area of cooperation between the tax authority and the tax professionals’ body.
The meeting concluded with the FBR and KTBA reaffirming their commitment to regular dialogue, stronger institutional coordination, taxpayer facilitation and greater voluntary compliance. The discussions underline the increasing role of digital systems in Pakistan’s tax administration, while also highlighting the need for practical support as taxpayers adjust to expanded reporting requirements and new technology-driven processes.
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