The Federal Board of Revenue (FBR) is expected to announce an extension for the filing of income tax returns for the tax year 2025, moving the deadline from September 30 to October 14, 2025, high-level sources in the FBR told ProPakistani.
The official notification is scheduled for release at midnight tonight, according to sources.
So far, 3.6 million taxpayers have filed their returns. The tax department has set a 10 million internal target of income tax filers for the current fiscal year. A total of 7.6 million tax returns were filed in the last fiscal year, 2024-25.
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Sources told ProPakistani that this target is not an IMF requirement but an internal benchmark set by the FBR.
The extension comes as the FBR faces mounting pressure to boost compliance and meet its ambitious revenue goals. The move is expected to provide much-needed relief to taxpayers struggling with technical glitches and last-minute rushes.
Tax professionals and business groups have been urging the FBR to extend the deadline, citing ongoing issues with the online filing system and the need for more time to complete documentation.
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According to a letter from Faraz Fazal Sheikh Advocate, President Rawalpindi Islamabad Tax Bar Association addressed to the Prime Minister, Section 118 of the Income Tax Ordinance, 2001, requires (a) individuals and associations of persons with a tax year from 1 July 2024 to 30 June 2025, and (b) companies with a year-end between 1 July 2024 and 31 December 2024, to file their Tax Year 2025 returns on or before 30 September 2025.
The letter respectfully requests the Prime Minister to direct the Federal Board of Revenue (FBR) to issue a circular granting a general extension of the filing deadline to at least 31 December 2025. It also urges that this extension be widely announced through electronic and print media to avoid millions of individual extension requests.
The request cites several challenges:
Under Rule 34A(2)(e), (3), and (4), FBR was required to issue final return forms in July 2024. However, these forms were only issued on 18 August 2025, over 13 months late. SRO 1562 (dated 18 August 2025) introduced eight categories of electronic returns, while SRO 1561 provided simplified electronic IT return forms for salaried individuals without business income. This delay significantly reduced the effective time available for taxpayers to prepare and submit accurate returns.
Severe rains in August and early September 2025 affected the entire country, with devastating floods impacting Khyber Pakhtunkhwa, Punjab, and Sindh. These events, combined with generally slow internet speeds, have made it difficult for taxpayers to access and file returns on the IRIS system. The resulting cash flow constraints have further limited taxpayers’ ability to meet their obligations, despite advance and withholding tax payments.
The IRIS system has repeatedly failed or slowed down throughout September 2025, leading to incomplete filings and repeated data loss, even after returns were saved. Taxpayers often had to restart the process from scratch. Tabs and sections in IRIS have disappeared and reappeared at various times, causing confusion and delays. The introduction (on 23 September 2025) and late removal (on 26 September 2025) of the Fair Market Value column created further confusion just days before the deadline. Historically, IRIS experiences slowdowns near filing deadlines, and these issues remain unresolved.
Based on the recent Active Taxpayers List (ATL) and government reports, at least 10 million returns are expected to be filed for Tax Year 2025. Even with prior payments through withholding and advance taxes, the remaining time is insufficient for taxpayers to prepare accurate returns. An extension until 31 December 2025 would allow for proper compliance, maintain taxpayer confidence, and reduce the trust deficit.
The planned closure of PRAL by December 2025 and incomplete IT system upgrades risk disrupting tax-related functions. Despite government digitization efforts and World Bank support, divided authority and delayed data centre readiness have limited system reliability. Granting an extension would help avoid complications during PRAL’s transition and protect taxpayers from technical failures.
In light of these challenges, the letter urges that the filing deadline for Tax Year 2025 be extended to at least 31 December 2025, with an official circular issued immediately and public announcements made through electronic and print media. This, the letter argues, will allow taxpayers to file accurate returns, reduce errors, and strengthen voluntary compliance.
