The filing of sales tax returns has come to a standstill as registered taxpayers struggle to comply with recent amendments introduced by the Federal Board of Revenue (FBR). Over the past two months, technical changes and procedural hurdles have led to widespread delays, preventing many from submitting returns for February and March 2025.

The Pakistan business community is facing mounting frustration, with tax experts calling on the FBR to address bottlenecks and ease compliance challenges. Instead of simplifying tax processes, the latest amendments—including new sales and purchase annexures—have added complexity to the filing system. The deadline for March filings has been extended to April 25, 2025, but concerns persist regarding legal formalities, particularly the introduction of mandatory reporting of 8-digit H.S codes with U.O.M, which was only recently incorporated into tax regulations.

Additionally, the FBR has rolled out Annexure C-1, requiring detailed proof of payments via banking instruments. Under Section 73, payments exceeding Rs. 50,000 must now be processed through official banking channels. Experts warn that while compliance is necessary, these ongoing regulatory changes impose undue burden on Pakistan’s already narrow tax base, increasing operational costs and filing difficulties.

Tax professionals urge the government to reconsider the timeframe for these new annexures, ensuring businesses have adequate flexibility to adapt while avoiding financial disruptions. The increasing complexity of tax return requirements demands balanced reforms that facilitate compliance rather than hinder it.