FBR Extends Tax Return Deadline Amid Decline in Filings 2025

The Federal Board of Revenue (FBR) has extended the income tax return filing deadline from September 30 to October 15, 2025, after strong pressure from business groups and taxpayers. The extension came following complaints of IRIS portal glitches and lack of preparation time. However, despite this relief, tax return filings have dropped by nearly 15% compared to 2024, raising concerns about Pakistan’s compliance with IMF targets.
Why Are Tax Return Filings Dropping?
Experts say rising inflation, distrust in FBR, technical issues, and frequent policy shifts are discouraging taxpayers. Many Pakistanis believe filing returns leads to harassment instead of benefits, while others are struggling to cope with financial pressures.
Tax Filings 2024 vs 2025 – A Quick Comparison
Tax Year | Filers by Sept 30 | Final Filers after Extension | Trend vs Previous Year |
2024 | 4.5 million | 4.9 million | +10% Growth |
2025 | 3.7 million | 4.1 million (expected) | -15% Decline |
Impact on Ordinary Pakistanis
Fewer filers mean the government will rely more on indirect taxes like GST and sales tax, which hit ordinary citizens harder. Non-filers also face higher charges on property, banking, and vehicle registrations, while development projects may slow due to reduced tax revenue.
FAQs
Q1: What is the new FBR tax return deadline for 2025?
The deadline has been extended to October 15, 2025.
Q2: What happens if I don’t file my return?
Non-filers face penalties and higher withholding taxes on banking, property, and vehicle transactions.
Q3: Why are fewer Pakistanis filing returns this year?
High inflation, trust issues with FBR, and frequent rule changes are the main reasons.