FBR warns of higher tax penalties after October 31 deadline
Individuals, businesses and traders could face increased penalties from November 1, according to FBR sources
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A Federal Board of Revenue office.
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Pakistan's Federal Board of Revenue (FBR) has warned taxpayers to file their income tax returns by October 31, 2026, saying higher penalties will apply from November 1 to those who miss the deadline, according to FBR sources.
Under the revised penalty structure outlined by the sources, the late-filer category will be eliminated from November 1, leaving those who have not filed their returns classified as non-filers.
What penalties will taxpayers face after October 31?
According to FBR sources, individuals who fail to file their income tax returns could face penalties of up to PKR 25,000, compared with PKR 1,000 previously. Associations of persons will face penalties of PKR 50,000, up from PKR 10,000, while companies will face penalties of PKR 100,000, compared with PKR 20,000.
The sources said taxpayers who miss the deadline will face penalties applicable to non-filers rather than the lower fines previously imposed on late filers.
The changes are intended to encourage timely filing and bring more individuals and businesses into the formal tax system.
What is the deadline for traders?
FBR sources said October 31 also marks the final opportunity for traders to register for sales tax and income tax under the applicable arrangements.
They advised traders to complete their registrations before the deadline to avoid additional penalties.
What are the penalties under the Asaan Tax Scheme?
Taxpayers using the government's Asaan Tax Scheme, or simplified tax scheme, will also face escalating penalties for submitting returns after the prescribed deadline, according to FBR sources.
The sources said a penalty of PKR 10,000 will apply during the first month after the deadline, rising to PKR 25,000 in the second month and PKR 50,000 in the third month.
The FBR is seeking to expand the tax base by encouraging more individuals and businesses to comply with their filing and registration obligations.
FBR sources urged taxpayers and traders to complete their filings and registrations by October 31 to avoid the higher financial penalties.
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