ISLAMABAD, Pakistan — The Federal Board of Revenue (FBR) announced on Wednesday a 16-day extension for filing income tax returns for the 2025 tax year, now giving taxpayers until October 31 to submit their income tax details.
The decision follows a previous extension granted two weeks ago, which initially set October 15 as the final date for filing. The earlier extension was made after multiple requests from trade bodies, taxpayers, and tax bar associations, citing difficulties in meeting the original deadline.
Tax Authority Struggles with Revenue Shortfall
Despite the extension, the FBR is grappling with a significant shortfall in its revenue collection. The tax body is facing a Rs1.2 trillion deficit against its ambitious revenue target of Rs12.97 trillion for fiscal year 2025, even after introducing Rs1.3 trillion worth of new taxes.
This underperformance has drawn attention from the International Monetary Fund (IMF), which recently questioned Pakistan over the revenue gap during technical-level talks.
FBR’s Final Revenue Collection Figures
The FBR ultimately collected Rs11.74 trillion after two downward revisions in its target. Officials attributed the shortfall to unrealized recoveries worth Rs250 billion, which remain tied up in pending court cases. Despite these challenges, the tax body is continuing its efforts to close the gap and meet its financial targets.
Taxpayers are now encouraged to utilize the extended deadline to file their returns and avoid potential penalties.
