Evasive FBR
2025-07-28
THE Federal Board of Revenue (FBR) recently introduced significant changes to the sales tax return filing system. While the intention behind these changes may be to enhance transparency and compliance, the execution has been deeply flawed.
The newly introduced formats contain serious computational errors, and there has been no official guidance or clarification from FBR on how to correctly file them. As a result, taxpayers are struggling to submit their returns on time.
Under the current sales tax rules, a taxpayer is marked `inactive` if sales tax returns are not filed for six consecutive months. However, some businesses have been declared inactive even after missing only two periods, adding to their distress.
Despite repeated communication from professional bodies, like the Pakistan Tax Bar Association and the Karachi Tax Bar Association, FBR`s response at best has been evasive.Instead ofaddressingthe issue, its focus appears to be on collecting advance taxes rather than resolving systemic problems.
When concerns are raised by taxpayers or consultants, the standard response is either to shift the blame onto revenue automation services, or to deflect by stating that others have filed their returns.
What the officials fail to acknowledge is that many of such returns had been either filed incorrectly, without the new annexures, or merely as nil returns.
The FBR should take immediate corrective measures, issue clear guidelines, and rectify the technical flaws in its system.
The cost ofinactionisnotjust an administrative inconvenience; it is a loss of confidence in our revenue authorities.
Ghulam Mujtaba Karachi