KARACHI: The Pakistan Tax Bar Association requested Prime Minister Shehbaz Sharif to provide relief by further extension of the deadline to file their tax returns, citing hardships experienced while filing by taxpayers before the earlier deadline of September 30, partly because of problems in the FBR’s online system and increasing pressures from rising amounts of financial obligations.
PTBA has observed that users face significant issues regarding the electronic network of FBR’s system which is used for filing tax returns. The system is more often than not put into freeze or stopped in its entirety, thus leading to losses on entry of data. It provides a lot of irritation when it is late, more specifically on weekends when one cannot rely on such a system and even breaks down on many occasions.
Furthermore, the PTBA condemned the failure of the government to give effective implementation of the Tajir Dost Scheme that is aimed at motivating more traders to get themselves registered with the FBR. Many intending registrants have not so far registered, and this still creates potential challenges for the authority of the government. Meanwhile, pressure is built on compliant taxpayers, and the non-filers do not suffer to be controlled and report under the tax law.
The association believes that long-time compliant taxpayers are being unfairly punished. Such people already suffer from multiple taxes such as income tax, super tax, and sales tax on almost every purchase. Despite these contributions, they enjoy minimal services and rights from the government.
The PTBA warned against penalizing those who file taxes through disconnected utility services or blocked SIM cards, as it can damage the people’s relationship. They added that such a move would greatly jeopardize tax-compliant filers to the detriment of non-filing unpunished ones.
Traditionally, due dates for tax returns were extended to assist taxpayers, and this year was no exception because most people are under extreme financial pressure. The PTBA believes that by 30th of September only approximately 40% will have filed their returns, 25% will be filing theirs, while 35% will not have commenced the exercise. Time is therefore needed to allow each taxpayer sufficient time to file without mistakes.
It recommended that the Prime Minister commend the taxpayers below for their efforts for the year 2023 by making an amnesty declaration. It suggested that the deadline of filing tax returns without penalty up to October 25, 2024, would help rebuild the confidence of the people in the government.
Conclusion: PTBA urges the government to regard this extension as taxpayers’ sacrifices to relieve it, strengthen the relationship between the government and its tax base, and engender greater compliance supporting the country’s economic health.
