Tax Lawyers Urge FBR to Fix IRIS and Review New Tax Return System
Tax lawyers have urged the Federal Board of Revenue (FBR) to address legal and technical issues in the newly introduced Income Tax Return for Tax Year 2026 and review the recently introduced Fixed Tax Scheme for Small Traders.
Intelligence analysis by Llama
The Pakistan Tax Bar Association (PTBA) has expressed concern over the delayed rollout of the revised tax return on the IRIS portal, citing operational issues and lack of consultation with tax professionals.
Imagine you're filling out a tax return, but the form is all wrong. That's what's happening with the new tax return system in Pakistan. Tax lawyers are asking the government to fix it so that people can fill out their taxes correctly and on time.
Analysis
A Call to Action for FBR Reform
The Pakistan Tax Bar Association (PTBA) has written a letter to the Federal Board of Revenue (FBR) Chairman Rashid Mehmood Langrial, urging the tax authority to address legal and technical issues in the newly introduced Income Tax Return for Tax Year 2026 and review the recently introduced Fixed Tax Scheme for Small Traders. The association welcomed the tax authority's digitization efforts but expressed concern over the delayed rollout of the revised tax return on the IRIS portal, saying taxpayers and tax practitioners have been left with limited time to understand the new filing requirements.
Operational Issues in the Revised Return
According to the PTBA, the redesigned return contains several operational issues, including errors in imported immovable property records, incomplete withholding tax data, and difficulties in locating information in the new auto-populated return format. The association warned that these issues could slow down the filing process and increase compliance risks for taxpayers.
Criticism of FBR's Consultation Process
The PTBA also criticized the FBR for introducing the revised return without sufficient consultation with tax professionals, arguing that early stakeholder engagement could have resolved many technical and procedural concerns before implementation. The association sought clarification on several aspects of the scheme, including eligibility criteria for traders, treatment of taxpayers with multiple income sources, audit protection, withholding tax obligations, penalties for non-compliance, and exemptions from Point-of-Sale (POS) integration and digital invoicing.
The Road Ahead
The PTBA urged the FBR to review both the revised income tax return and the Fixed Tax Scheme in consultation with stakeholders to remove ambiguities and facilitate smoother tax compliance before full implementation. The FBR's response to these concerns will impact the tax compliance process for taxpayers and the overall economy of Pakistan.
Key points
- The Pakistan Tax Bar Association (PTBA) has urged the FBR to address legal and technical issues in the newly introduced Income Tax Return for Tax Year 2026.
- The PTBA has expressed concern over the delayed rollout of the revised tax return on the IRIS portal.
- The association has criticized the FBR for introducing the revised return without sufficient consultation with tax professionals.
- The PTBA has sought clarification on several aspects of the Fixed Tax Scheme for Small Traders.
If the FBR addresses the concerns of the tax lawyers and fixes the issues with the new tax return system, it could lead to smoother tax compliance and reduced compliance risks for taxpayers.
If the FBR fails to address the concerns of the tax lawyers and fixes the issues with the new tax return system, it could lead to delays in tax filing, increased compliance risks for taxpayers, and potential revenue losses for the government.
