By Staff Reporter
ISLAMABAD: The Federal Board of Revenue said on Monday there would be no extension of the September 30 deadline for filing income tax returns for the 2025 tax year, dismissing media reports that had linked any such move to the devastation wrought by recent floods.
The clarification came after unverified reports circulated on various media platforms claiming an extension was in the offing, with some attributing the speculation to the floods that have killed more than 1,000 people, displaced nearly 3 million and inundated vast tracts of farmland across the South Asian nation.
“The FBR has taken notice of unverified reports circulating on various media platforms claiming that the deadline for filing income tax returns for the tax year 2025 will be extended,” FBR said in a statement. “Some elements have also attempted to link this perceived extension to the recent floods.”
The tax authority stressed that “a vast majority of taxpayers reside in areas unaffected by floods and have had ample time to discharge their national obligation of filing returns.” The board also rejected suggestions that its online filing platform, the Integrated Risk Information System (IRIS), had slowed down, calling such reports “unfounded”. It said the system was “fully operational, functioning smoothly, and taxpayers can easily file their returns using the new simplified income tax return form.”
Pakistan, home to more than 240 million people, struggles with one of the region’s lowest tax-to-GDP ratios and has a history of falling short on collection targets. In June, Prime Minister Shehbaz Sharif’s government set a record-high target of Rs14.13 trillion for the 2025-26 fiscal year, a 9% increase from the previous year. Officials say achieving the goal is crucial to curbing dependence on foreign borrowing and bolstering long-term fiscal health.
The FBR urged all eligible taxpayers to “act responsibly and file their Income Tax Returns with accuracy and honesty before the deadline of 30th September, 2025 to avoid any legal consequences.” It cautioned that missing the cutoff “will result in late-filer status and imposition of penalties under the law.” For those facing extreme hardship, the board outlined a limited relief option. “In case of extreme hardship, the taxpayers can avail extension of return up to fifteen days with payment of due taxes by 30th September subject to approval by the relevant committee as per law.”
The announcement follows a turbulent week for the tax regime. Last week, the government executed a sharp reversal, scrapping a new asset valuation column from the 2025 return form just a day after issuing a firm defence of the change. The column, introduced in the IRIS system, had required filers to declare the estimated fair market value of movable and immovable assets, drawing fire from business groups and other stakeholders.
Sharif responded by convening a high-powered committee under Law Minister Azam Nazeer Tarar to review the provision. After talks with senior tax officials, the panel recommended its removal, a decision Sharif endorsed. The episode underscores the sensitivities around tax reforms in Pakistan, where broadening the base remains a key demand from international lenders like the International Monetary Fund, even as domestic pushback persists.
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