Technical Difficulties FPCCI Advocates 30-Day Extension in Income Tax Returns Deadline Atif Ikram Sheikh, President FPCCI

Karachi: Mr. Atif Ikram Sheikh, President FPCCI, has highlighted the technical difficulties and delays in filing income tax returns; and, has recommended an extension of 30 days as a special case scenario to enable the system to handle the enormous volume and flux. There are limitations and incapacities in the online system of the federal board of revenue (FBR); and, as a result, tax filing system remains cumbersome for the common man. The system needs to be fixed for delays and downtimes, he added.

Mr. Atif Ikram Sheikh reminded that FPCCI, being the apex body, has been putting forward simplification of taxation system in general; and, income tax return form in particular to facilitate the process. It is in the national interest and interest of the economy to assist as many citizens possible to file the returns. The more Pakistan’s economy is inclusive, formal and documented, the more it will be acceptable for external financing from international financial institutions and lenders, he added.

FPCCI Chief maintained that FBR needs to expedite digitalization for a multitude of reasons: minimizing human involvement; saving time & resources of the return filers; reduction in documentation errors; improving systemic & procedural efficiency and curtailing complaints, anomalies and discrepancies.

Mr. Atif Ikram Sheikh stated that the FBR and Pakistan Revenue Automation Limited (PRAL) missed important deadlines vis-a-vis issuance of return forms – as given in rule 34A(2)(e), (3), and (4); where, it is mandated, that the draft electronic and manual return forms were to be released and made available by January 1, 2024. However, the aforementioned forms were issued on June 21, 2024 – a procrastination by more than five months.

Moreover, he maintained, final return forms should have been notified by January 31, 2024; but, were issued on July 4, 2024 – a deferment by approximately six months. This should be taken into due consideration to ensure fairness.

President FPCCI elaborated that salaried class has, in effect, already paid all their taxes in advance; as employers deduct their income tax at source. FBR should move decisively to align its system with international best practices; and, should bother salaried individuals only for reconciliation purposes, he added.

Mr. Atif Ikram Sheikh explained that an extension or a grace period of 30-day – without penalties – can go a long way in enhancing compliance with the income tax return filing for the year 2023 – 24. We should look at the bigger picture and respect the legitimate procedural issues being faced by tax filers, he added.

Brig Iftikhar Opel, SI (M), Retd.
Secretary General