# Pakistan FBR tax policy and administration changes

> Developing situation record from CLSTR: https://clstr.news/situations/pakistan-fbr-tax-policy-and-administration-changes
> Updated: 2026-10-15T04:34:15.000Z. Sources: 8. Developments: 3.

The Federal Board of Revenue (FBR) in Pakistan has introduced new measures regarding income tax administration and relief for specific taxpayer groups.

Initially, the FBR proposed amendments to the Income Tax Rules, 2002, which would allow late filers to enter the Active Taxpayers List (ATL) without the standard surcharge. To qualify, taxpayers must submit a formal undertaking via the Iris system and agree to a six-month restriction on purchasing or acquiring property. The FBR stated it would monitor compliance through financial and registry data, with the threat of permanent surcharge reinstatement if the restriction is violated.

To alleviate the financial burden on employees in both the public and private sectors, FBR Chairman Rashid Mahmood Langrial directed officials to stop issuing advance income tax notices to salaried individuals whose sole source of income is their monthly salary. This move follows public criticism regarding tax distribution; former Finance Minister Asad Umar previously noted that the salaried class contributed over Rs600 billion in taxes last year, while landlords contributed less than Rs10 billion. Individuals with additional income sources, such as rental income or business profits, remain subject to adjustable advance income tax.

Recently, tax experts and business chambers have urged the FBR to extend the 2026 tax year filing deadline for income tax returns and wealth statements to December 2026. Stakeholders cite technical issues with the IRIS online filing portal and delays in processing applications. Additionally, the FBR reported low participation in a special tax scheme for small traders and shopkeepers, receiving only 130 returns despite an expected turnout of 500,000 to 600,000 filings.

## Timeline

### 2026-10-15: FBR faces deadline extension calls and low trader scheme turnout

Pakistan's FBR faces calls to extend the 2026 income tax deadline to December due to technical issues, while a special tax scheme for small traders reports significantly low participation.

2 sources. https://clstr.news/cluster/fbr-faces-deadline-extension-calls-and-low-trader-scheme-turnout

### 2026-10-10: FBR stops advance income tax notices for salaried individuals

Pakistan's FBR Chairman has ordered an end to advance income tax notices for salaried individuals whose only source of income is their salary, aiming to provide relief to the working class.

5 sources. https://clstr.news/cluster/fbr-halts-advance-income-tax-notices-for-salaried-individuals

### 2026-10-07: FBR proposes ATL inclusion for late filers without surcharge

Pakistan's FBR proposes allowing late income tax filers to join the Active Taxpayers List without a surcharge, provided they agree not to purchase any property for six months.

3 sources. https://clstr.news/cluster/fbr-proposes-atl-inclusion-for-late-filers-without-surcharge

---
Cite as: Pakistan FBR tax policy and administration changes. CLSTR, https://clstr.news/situations/pakistan-fbr-tax-policy-and-administration-changes