FBR should simplify tax filing

October 2, 2026

The Federal Board of Revenue (FBR) is considering a 15-day extension in the income tax return filing deadline for Tax Year 2026 following requests from business organisations and tax professionals. The existing deadline expired on September 30, while around 5.2 million returns had been submitted by Wednesday, including nearly 1.3 million from new taxpayers. The figure is considerably higher than the approximately 3.2 million returns filed during the same period last year. The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and the Pakistan Tax Bar Association have sought additional time, citing difficulties in completing returns and arranging supporting documents. Business representatives have also approached Prime Minister Shehbaz Sharif for an extension. The FBR is reviewing these requests, but no formal notification has been issued. Until an official announcement is made, taxpayers are required to follow the existing deadline. The increase in returns reflects growing participation in the tax system, as the government seeks to widen the tax base and bring more people into the formal economy.

The FBR should focus on maintaining its announced deadlines rather than repeatedly extending them. Frequent extensions can weaken tax discipline, create uncertainty and encourage taxpayers to delay filing until the last moment. A predictable tax system is necessary for both the government and businesses to plan their financial affairs. However, strict deadlines must be accompanied by a taxpayer-friendly culture and a simple filing process. The FBR should improve its online system, reduce unnecessary paperwork, provide clear instructions and ensure that its website remains accessible during the final days of filing. Taxpayers should also have access to effective help desks and timely guidance, particularly those filing returns for the first time. The addition of 1.3 million new filers is an opportunity to build public confidence in the tax system. The government must ensure that taxpayers are treated fairly and that their money is spent transparently on public services, education, healthcare and infrastructure. Broadening the tax base should also mean bringing untaxed sectors into the system instead of placing an excessive burden on existing taxpayers. A combination of firm deadlines, simple procedures, fair enforcement and public trust can help Pakistan develop a stronger tax culture and reduce its dependence on borrowing.