FPCCI President Urges FBR to Extend Return Filing Date By 30 Days

President Federal of Pakistan Chamber of Commerce and Industry (FPCCI) Atif Ikram Sheikh 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, the tax filing system remains cumbersome for the common man. The system needs to be fixed for delays and downtimes, he added. Atif Ikram Sheikh reminded that FPCCI, being the apex body, has been putting forward simplification of the 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 as possible in filing 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; reducing documentation errors; improving systemic & procedural efficiency and curtailing complaints, anomalies, and discrepancies. 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 rules 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, that final return forms should have been notified by January 31, 2024; but, were issued on July 4, 2024 – a deferment of approximately six months. This should be taken into due consideration to ensure fairness. President FPCCI elaborated that the 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. 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.