Islamabad — September 29, 2025 — The Federal Board of Revenue (FBR) has categorically refused to grant any extension in the deadline for filing annual income tax returns, declaring September 30, 2025, as the final date. The tax authority emphasized that taxpayers must comply with the deadline and warned of consequences for those who fail to submit their returns on time.
No Extension Beyond September 30
According to FBR officials and a clarification issued late Sunday, all reports circulating in the media and on social platforms regarding a possible extension are “baseless and misleading.” The FBR maintained that taxpayers had ample time to prepare and file their returns for the tax year 2025, and therefore, there is no justification for extending the deadline further.
“The deadline of September 30 is final, and no extension will be provided,” the statement said.
Rejecting Linkage with Flood Situation
One of the main arguments presented by various tax associations and groups seeking an extension was that many taxpayers were affected by recent floods, particularly in Punjab and Sindh, making it difficult for them to prepare and file tax returns on time.
However, the FBR rejected this reasoning, stating that “the majority of taxpayers were not impacted by floods” and that those who were affected still had sufficient opportunity to comply with tax obligations during the designated filing period.
“The effort to link floods with tax filing deadlines is misplaced,” the clarification added.
IIRIS System “Fully Functional”
Another complaint raised by taxpayers was the alleged slowness of the FBR’s online tax filing system, known as IIRIS. Several individuals claimed that system delays and technical glitches had made filing returns a cumbersome process.
The FBR, however, dismissed these concerns, insisting that the platform is “fully functional and operational.” Officials argued that any minor issues that arose were promptly resolved and that overall system performance has remained stable throughout the filing season.
“This narrative of system inefficiency is not supported by facts,” the board stated, urging taxpayers not to rely on rumors and instead complete their submissions without delay.
Consequences for Non-Compliance
The FBR has also issued a stern warning that failure to file returns within the stipulated deadline will carry legal and financial consequences. Non-filers could face heavy penalties, surcharges, or even restrictions on certain financial and business activities.
Tax experts note that late filers may not only incur fines but could also lose access to benefits associated with being on the Active Taxpayers List (ATL), including reduced withholding tax rates. Businesses, in particular, may suffer operational disadvantages if excluded from the ATL.
Growing Pressure on FBR
Despite FBR’s strict stance, pressure from taxpayers’ bodies, trade unions, and professional associations has been mounting. Many argue that the country’s recent economic challenges—including inflation, political instability, and natural disasters—have strained citizens, making timely compliance difficult.
A senior representative of a tax consultants’ association told local media: “Our clients, especially small businesses, are overwhelmed by rising costs. They need more time to gather accurate records and fulfill their tax obligations. A rigid deadline only adds unnecessary pressure.”
Nonetheless, the FBR appears unwilling to shift its position, citing international best practices that discourage repeated extensions in tax deadlines.
Background: Pakistan’s Struggle with Tax Compliance
Pakistan has long struggled with low tax compliance and one of the lowest tax-to-GDP ratios in the region. Out of a population of more than 240 million, fewer than 4 million individuals and businesses consistently file tax returns.
The government, under pressure from the International Monetary Fund (IMF), has been taking steps to broaden the tax base and ensure stricter enforcement. Officials believe that maintaining strict deadlines is essential to building a culture of compliance and discipline among taxpayers.
An FBR official explained: “If we keep extending deadlines year after year, taxpayers will never take them seriously. Our aim is to establish a standard practice where deadlines are respected, just as they are in other countries.”
Expert Opinions
Tax analysts remain divided on the FBR’s refusal to grant an extension. Some applaud the move, arguing that a no-nonsense approach is necessary to instill discipline and increase compliance rates. Others, however, caution that rigid deadlines without flexibility in exceptional circumstances risk alienating honest taxpayers and may discourage voluntary compliance.
A Karachi-based chartered accountant remarked: “FBR is right in principle, but it must also balance policy with ground realities. Floods, inflation, and system challenges cannot be ignored.”
Final Reminder to Taxpayers
With less than 24 hours remaining before the deadline, the FBR has urged taxpayers to act swiftly and file their returns online without delay. Authorities have also warned against falling for social media rumors suggesting a last-minute extension.
“Taxpayers are advised to log in to the IIRIS system and complete their returns immediately,” the board said. “Non-compliance will not be tolerated.”
As the clock ticks down to September 30, millions of Pakistanis are racing against time to file their tax returns, knowing that this year, unlike previous years, the FBR is unlikely to bend under pressure.
