FBR to raise late-filing penalties after 30 September tax deadline

Taxpayers who fail to file their income tax returns by the 30 September deadline face sharply higher penalties from 1 October, according to media reports, after the Federal Board of Revenue reportedly decided to discontinue the late-filer category. The change removes the option for Pakistani taxpayers to file after the deadline at a comparatively modest cost.

Under the reported changes, the penalty for individuals filing after the deadline would rise from Rs1,000 to Rs25,000. For late-filing associations of persons, the penalty is set to increase from Rs10,000 to Rs50,000, while companies could face a penalty of Rs100,000, up from Rs20,000.

The Federal Board of Revenue has stated that 30 September is the deadline for submitting income tax returns, and taxpayers have been advised to provide the required supporting documents with their returns. According to an FBR spokesperson, action may also be taken against taxpayers who conceal assets or provide incorrect information, and authorities may use various means, including bank accounts, to recover outstanding amounts.

The State Bank of Pakistan said all commercial bank branches will remain open until 10pm on 30 September to facilitate over-the-counter payments of government duties and taxes. The central bank said the decision was taken at the request of the Federal Board of Revenue to ensure taxpayers can complete their government-related payments before the deadline.