Income tax returns 2021: Pakistan's business community asks FBR to extend deadline

KARACHI: As the deadline to file income tax returns nears, businessmen have urged the Federal Board of Revenue to extend the date to file by two months to facilitate the business community, according to report in The News published Wednesday.

Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President Mian Nasser Hyatt Maggo demanded FBR extend the deadline to file tax, saying it would also support the government’s drive to broaden the tax base.

Referring to the September 30 deadline, he said the recommendation was based on the feedback received from businesses across Pakistan.

He said that hundreds of thousands of SME owners would not be able to file their income taxes by Thursday, which is the last day to file returns.

“FBR has notified a daily surcharge of 0.1% for delayed filing on taxable income, which is not only harsh but also impractical as it translates into 3% per month and 36% per annum. The maximum surcharge by FBR should not be more than KIBOR plus 2%, which also happens to be the rate when FBR delays the processing of tax refunds,” he added.

Maggo reiterated his stance that FBR should stop taking one-sided radical anti-business decisions, and instead should consult the business industry and trade community of Pakistan.

Working hours extended

A day earlier, the FBR had announced an extension in the working hours of its offices to facilitate income tax filers.

According to a statement by the tax authority, the relevant offices will remain open till 12 midnight on September 29 (Wednesday) and September 30 (Thursday).

The FBR online portal for those wishing to file their returns online has been encountering errors in its server, causing immense difficulties to people.

The Pakistan Tax Bar Association had also demanded an extension in the deadline to file income tax returns.