FBR likely to extend tax return deadline by 15 days

Pakistan’s Federal Board of Revenue (FBR) is expected to extend the September 30 income tax return deadline for Tax Year 2026 by 15 days after trade bodies and tax associations pressed the government to give taxpayers more time, according to officials and sources familiar with the matter.

Will FBR extend the Tax Year 2026 return deadline?

FBR has yet to formally extend the September 30 deadline, but officials said a 15-day extension is under consideration following requests from business and professional bodies. If approved, it would give taxpayers until October 15 to submit their Tax Year 2026 income tax returns and supporting documentation.

About 5.2 million income tax returns had been filed by Wednesday, including around 1.3 million submitted by new taxpayers, according to FBR officials.

The figures came on the final day of the existing filing period. FBR has yet to formally announce an extension, meaning taxpayers remain subject to the September 30 deadline unless the tax authority issues a notification.

Officials said the government was considering the extension following representations from business groups and tax professionals.

Trade bodies have also approached Prime Minister Shehbaz Sharif seeking additional time, according to FBR sources.

The Federation of Pakistan Chambers of Commerce and Industry and the Pakistan Tax Bar Association have separately urged the government and FBR to extend the deadline, citing difficulties faced by taxpayers in completing compliance requirements.

Why does FPCCI want the deadline extended?

FPCCI has sought a one-month extension to October 31, citing repeated slowdowns, technical glitches and downtime on FBR’s IRIS online filing system. The chamber also said taxpayers need more time for wealth reconciliation and to meet requirements arising from recent tax laws and reporting obligations.

FPCCI President Atif Ikram Sheikh urged the government to extend the deadline to October 31, saying problems with the IRIS portal were making it difficult for taxpayers to complete their returns on time.

Sheikh said taxpayers also needed additional time to complete wealth reconciliation because of complexities arising from recent tax laws and reporting requirements.

He said rising inflation and higher business costs had added to the difficulties faced by small and medium-sized enterprises.

An extension would give taxpayers more time to complete their returns and could also increase the number of active tax filers, Sheikh said.

He urged the prime minister, finance minister and FBR chairman to take immediate notice of the problems, arguing that giving taxpayers more time rather than rushing them would help improve tax compliance.

How many income tax returns have been filed?

Around 5.2 million returns had been submitted by Wednesday, according to FBR officials, including about 1.3 million from new taxpayers.

The increase comes as FBR seeks to broaden Pakistan’s tax base and bring more individuals and businesses into the return-filing system.

The Active Taxpayer List for Tax Year 2025 stood at 9,032,971 taxpayers as of September 13. That figure is separate from the number of Tax Year 2026 returns filed during the current filing period and should not be compared directly with the 5.2 million figure.

FBR officials said the final decision on extending the deadline would be communicated by the government and tax authority.

A 15-day extension, if approved, would give existing and new taxpayers additional time to complete returns and related documentation while allowing FBR to handle the large volume of filings submitted near the deadline.

Why does the filing deadline matter?

Pakistan has been seeking to broaden its tax base as part of wider fiscal reforms aimed at increasing revenue collection and reducing reliance on borrowing.

Taxpayers and tax professionals have complained of difficulties completing returns and related documentation within the existing filing period, prompting calls for additional time.

Return-filing status can also affect how taxpayers are treated under Pakistan’s tax system, increasing the importance of the filing deadline for individuals and businesses.

For now, the September 30 deadline remains in effect unless FBR formally announces an extension.