FBR IRIS Glitches Threaten Taxpayers With Late-Filing Penalties, PCDMA Warns
PCDMA urges FBR to resolve IRIS filing problems affecting Sales Tax Returns.
Persistent technical problems in the Federal Board of Revenue’s (FBR) IRIS system have created serious difficulties for taxpayers filing Sales Tax Returns, the Pakistan Chemicals & Dyes Merchants Association (PCDMA) has warned.
PCDMA Chairman Salim Valimuhammad said the glitches were creating a major bottleneck in the filing process. He said taxpayers now face greater difficulty meeting statutory deadlines and could face penalties for late filing.
The association has urged FBR Chairman to intervene urgently and address the technical problems.
Annex H1 Creates Filing Difficulties
Valimuhammad highlighted problems linked to Annex H1 — Statement of Stock for Traders.
The requirement followed the implementation of SRO 350(I)/2024. According to the PCDMA chairman, the new process has increased taxpayers’ dependence on suppliers when preparing and submitting Sales Tax Returns.
Mac Users Lag Behind Windows Users in Cybersecurity Practices, Kaspersky Survey Finds
“Most taxpayers have become dependent on their suppliers to submit their returns,” he said.
Valimuhammad said this dependency has slowed the filing process across the country. As a result, many registered taxpayers now struggle to submit their returns before the prescribed deadlines.
Taxpayers Seek Immediate FBR Action
The PCDMA chairman raised the issue in a letter to the FBR chairman.
He urged the revenue authority to treat the matter as a priority. He also warned that technical problems should not prevent businesses from meeting their legal obligations.
The association said taxpayers want to remain compliant. However, technical and procedural obstacles are making timely filing increasingly difficult.
PCDMA has therefore asked the FBR to introduce a practical and permanent solution.
Issue Affects Businesses Beyond Chemical Trade
According to Valimuhammad, the problem extends beyond the chemical and dyes sector.
He said sales tax-registered businesses across Pakistan face similar difficulties with the filing process.
PCDMA represents around 750 members and remains one of the major trade bodies in Pakistan’s chemical sector. The association decided to approach the FBR directly after receiving concerns from its members.
The move aims to help businesses complete their tax returns without unnecessary delays.
PCDMA Proposes Permanent Solution
PCDMA has prepared a detailed presentation on the problems associated with Annex H1.
The association has also proposed a mechanism to resolve the issue. Valimuhammad said the proposed solution could provide broader relief to taxpayers.
He added that a simpler process could also accelerate the submission of Sales Tax Returns.
The association stressed that it does not oppose tax compliance. Instead, it wants the FBR to remove technical barriers that prevent taxpayers from filing returns on time.
Smoother System Could Improve Compliance
PCDMA said a more efficient filing mechanism would benefit both businesses and the government.
A smoother system could reduce administrative pressure on taxpayers. It could also improve the pace of return filing and strengthen overall tax compliance.
Valimuhammad urged the FBR chairman to resolve the issue at the earliest.
He also offered PCDMA’s assistance in providing further technical details. The association said it remains ready to explain the problems and support implementation of a workable solution.
The PCDMA chairman maintained that timely action from the FBR could help prevent unnecessary penalties and restore a smoother Sales Tax Return filing process for registered taxpayers.
