FBR faces deadline extension calls and low trader scheme turnout

Tax experts and business chambers are urging Pakistan’s Federal Board of Revenue (FBR) to extend the income tax return and wealth statement filing deadline for the 2026 tax year to December 2026. Proponents of the extension cite technical issues with the IRIS online filing portal, delays in processing extension applications, and the late notification of the final income tax return form. While the FBR previously extended the deadline to October 31, stakeholders argue that taxpayers require more time to reconcile information following the final form's notification on September 2, 2026.

Separately, the FBR reported significantly lower than expected participation in its special tax scheme designed for small traders and shopkeepers. Despite an expected turnout of 500,000 to 600,000 filings, the board has received only 130 returns under the scheme. The initiative was intended to simplify compliance and expand the tax base by allowing eligible traders to pay a minimum annual tax or a percentage of turnover through simplified filing methods. Participants in the scheme are granted protections from routine inspections and certain digital invoicing requirements.