KARACHI: The Karachi Tax Bar Association (KTBA) has launched a scathing attack on the Federal Board of Revenue (FBR), holding it directly responsible for what it calls a “2025 return filing disaster.” In a strongly worded letter to the FBR chairman, the association accused the tax authority of negligence, legal violations, and creating chaos for millions of taxpayers due to mismanagement of its online filing system, IRIS.
KTBA President Ali A. Rahim said the problems were not simply technical. What we are witnessing is not just a glitch it is an institutional failure, he declared. Tax consultants across Pakistan have complained that repeated breakdowns of the IRIS portal, constant tinkering with return formats, and poor communication from the FBR have turned the filing process into a nightmare.
The controversy began when the FBR issued the final return of income for Tax Year 2025 on August 18, 2025, through SRO 1562(I)/2025. Experts say this was a direct violation of Rule 34A of the Income Tax Rules, 2002, which requires timely notification of return formats. Because of the delay, taxpayers were left with only 48 days (31 + 17) to submit returns, instead of the 90 days guaranteed under Section 118 of the Income Tax Ordinance, 2001.
To make matters worse, the FBR continued changing the return format during this already shortened filing period. On September 24, a new column titled “Estimated Current Market Value” was suddenly added to the assets and liabilities statement, only to be hastily withdrawn on September 26. Tax professionals argue such arbitrary changes without following the procedure under Section 237 of the Ordinance are not only disruptive but also legally questionable.
Meanwhile, widespread technical failures of IRIS have further compounded the crisis. Taxpayers and consultants report hours wasted on repeated login attempts, failed uploads, and unstable server performance. According to KTBA, its repeated requests for meetings whether online or in-person were ignored by FBR officials, reflecting a lack of accountability.
The association has now demanded a full disclosure of all IRIS breakdowns under the Right of Access to Information Act, 2017. It has also called for the re-notification of the income tax return, granting taxpayers the full statutory 90-day period for filing. Additionally, KTBA insists that FBR owes taxpayers a formal public apology for mismanagement, legal violations, and undermining trust in the tax system.
This fiasco has shaken confidence in the very institution responsible for revenue collection, the association said, warning that unless immediate corrective measures are taken, Pakistan’s already fragile tax system will suffer further credibility damage at a time when the economy urgently needs stability.
Analysts note that this episode has reignited debate over the effectiveness of FBR’s digital infrastructure. Many believe the government must urgently overhaul the system, invest in reliable IT upgrades, and establish proper consultation mechanisms with stakeholders to prevent such crises in the future.
For now, taxpayers remain uncertain and frustrated, waiting to see if the FBR will take responsibility or allow the 2025 filing season to go down as one of the most mismanaged in Pakistan’s tax history.