FBR’s Clarification on Active Taxpayers List Sparks Confusion

The Federal Board of Revenue (FBR) on Monday issued a puzzling clarification, stating that no taxpayer who filed an extension application within the prescribed time limit has been removed from the Active Taxpayers List. It is unclear why the FBR felt the need to issue such a clarification, which is both inaccurate and contrary to the facts and actions taken by the FBR. According to the clarification, the FBR observed that a misleading report was circulating on certain media platforms regarding the declaration of a large number of taxpayers as ‘inactive’. The FBR asserted that no taxpayer who filed an extension application within the prescribed time limit has been removed from the Active Taxpayers List. The Active Taxpayers List for 2025 will be based on returns filed for Tax Year 2024, along with all new filers for Tax Year 2025 up to November 15, 2025. Taxpayers who have duly filed an extension application through the system have been granted a 15-day extension automatically, in accordance with the directions of the FBR Chairman. Manual filing of returns has been discontinued through recent amendments to the Income Tax Rules. However, individuals who filed manual returns last year are being granted a one-month facilitation period to enable them to e-file their returns. Regional Tax Offices (RTOs) have been instructed to provide full assistance to such taxpayers to ensure a smooth transition to electronic filing. Taxpayers who missed the deadline can still submit an extension application through the online system up to November 15, 2025, stating valid reasons for the delay to the concerned Commissioner. The FBR maintains that it is committed to facilitating taxpayers and ensuring that all genuine filers retain their active status, while promoting transparency and compliance through digital systems. However, Supreme Court tax lawyer Waheed Shahad Butt told ProPakistani that the FBR’s statement is false. He said the FBR made him “inactive” on November 1, despite his application for an extension on October 31. He did not file his return by October 31. The same policy, he said, has been applied to all taxpayers who failed to file returns by October 31 but applied for an extension on that date.