Technical Problems Disrupt Sales Tax Return Filing
Persistent technical issues in the Federal Board of Revenue’s (FBR) IRIS system are creating difficulties for businesses trying to submit their Sales Tax Returns within statutory deadlines, according to the Pakistan Chemicals & Dyes Merchants Association (PCDMA).
PCDMA Chairman Salim Valimuhammad has urged the FBR chairman to address the issue urgently, saying recent changes to the IRIS system have created technical and procedural obstacles for registered taxpayers.
Annex H1 Creates Supplier Dependency
A major concern raised by the association relates to Annex H1 — Statement of Stock for Traders, introduced following the implementation of SRO 350(I)/2024.
According to PCDMA, the requirement has resulted in many taxpayers becoming dependent on their suppliers to complete the information needed for their Sales Tax Returns.
The association says this dependency has slowed the filing process and made it increasingly difficult for businesses to meet prescribed deadlines.
Taxpayers Face Risk of Late-Filing Penalties
PCDMA said many sales tax-registered businesses are willing to remain compliant but are struggling to file their returns on time because of the technical and procedural difficulties.
The association warned that taxpayers could face late-filing penalties despite the problems being outside their direct control.
The issue, according to PCDMA, is not limited to the chemical and dyes trade but is affecting sales tax-registered businesses across the country.
PCDMA Seeks Permanent Solution
Representing around 750 members, PCDMA has approached the FBR directly and prepared a detailed presentation outlining the problems associated with Annex H1.
The association has also proposed a mechanism aimed at resolving the issue on a permanent basis.
PCDMA believes the proposed changes could provide broader relief to taxpayers while helping accelerate the filing of Sales Tax Returns.
Trade Body Calls for Practical Tax Compliance
Salim Valimuhammad stressed that the association’s objective is not to weaken tax compliance.
Instead, PCDMA wants the technical and procedural barriers preventing businesses from meeting their legal obligations to be removed.
A smoother filing mechanism, the association believes, would reduce the administrative burden on businesses and improve the overall pace of return submission.
FBR Urged to Act on Priority
PCDMA has asked the FBR chairman to take up the matter on a priority basis and facilitate an early resolution.
The association has also offered its assistance in providing further technical clarification and explaining the problems encountered by taxpayers.
For businesses, resolving the IRIS glitches and reducing unnecessary dependencies could make the tax filing process more predictable while supporting the government’s broader objective of improving compliance.