Business

FBR Expected to Extend Tax Return Deadline to Oct 14

The Federal Board of Revenue (FBR) is expected to extend the income tax return filing deadline for Tax Year 2025 from September 30 to October 14, 2025, according to high-level sources. An official notification is likely to be issued at midnight.

Last year, 7.6 million tax returns were filed, while so far, 3.6 million taxpayers have submitted returns for the current year. The FBR has set an ambitious internal target of 10 million returns, though officials clarified this is not an IMF requirement. Tax professionals and business groups had been pressing for an extension, citing technical issues and natural disruptions.

Reasons for Extension

A formal letter from the Rawalpindi Islamabad Tax Bar Association to the Prime Minister highlighted multiple challenges that hindered timely filing:

Challenges Details
Late issuance of forms Final return forms were released on 18 August 2025 instead of July 2024, leaving taxpayers with little time.
Natural disasters Floods and heavy rains in August–September disrupted internet access and taxpayer activity.
IRIS glitches System slowdowns, repeated crashes, and last-minute changes (e.g., Fair Market Value column) caused delays.
Target pressure With 10 million returns expected, the available time was insufficient for accurate compliance.
System transition Ongoing FBR/PRAL restructuring risks further disruptions in digital tax processes.

Tax experts argue that extending the deadline until December 31, 2025, would allow proper compliance, reduce individual extension requests, and rebuild taxpayer confidence. They stressed that transparent communication through print and electronic media is essential to avoid confusion.

For now, taxpayers can expect the official extension until October 14, offering temporary relief while the broader compliance challenges remain unresolved.