Karachi: Prominent business leader Mian Zahid Hussain has described the Federal Board of Revenue’s (FBR) draft electronic income tax return forms under SRO 835(I)/2026 as a positive move toward digital transparency, while cautioning that increased procedural complexity could create challenges for small and medium-sized enterprises (SMEs).
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In a statement issued in Karachi, he said the transition toward a more documented and digital tax system is necessary for economic modernization. However, he stressed that the process must remain user-friendly to avoid discouraging compliance among SMEs and individual taxpayers.
The newly notified draft forms apply to individuals, SMEs, Association of Persons (AOPs), and companies, and introduce more detailed disclosure requirements, including a comprehensive summary of financial transactions for the tax year.
Mian Zahid Hussain noted that while the reforms reflect the Federal Board of Revenue’s broader digitization agenda, the increasing complexity of documentation may raise compliance costs, particularly for businesses without dedicated tax departments.
He highlighted that FBR tax collection rose by 10 percent to Rs 10.2 trillion during July–April FY26, compared to Rs 9.3 trillion in the same period last year, though it still fell short of the revenue target by Rs 684 billion.
He urged authorities to simplify key components of the draft, including employer registration numbers and property income declaration fields, and criticized the seven-day consultation window as insufficient for meaningful stakeholder feedback.
He also pointed out that the early issuance of the forms indicates the FBR’s intention to strictly adhere to the upcoming tax filing schedule for individuals and businesses.
Warning that overly technical systems could undermine efforts to broaden the tax base, he called on the FBR leadership to engage closely with the business community to refine the draft SRO.
Mian Zahid Hussain concluded that the business community supports digital transformation of Pakistan’s tax system, but emphasized that it must be inclusive, efficient, and designed to reduce—not increase—administrative burden through simplified and automated processes.
