LCCI demands one-month extension in income tax return filing deadline

LAHORE, Sep 15 (APP):Lahore Chamber of Commerce & Industry (LCCI) President Faheem Ur Rehman Saigol Tuesday urged the Federal Board of Revenue and the federal government to extend the deadline for filing of income tax returns for Tax Year 2026 from September 30 to at least October 31, saying that the additional time would facilitate taxpayers and encourage maximum compliance.

LCCI President said, the business community was facing an unusually challenging operating environment, with domestic businesses dealing with high operating costs while international trade and economic conditions remained uncertain.

Global trade is also facing significant challenges due to geopolitical tensions, changing tariff regimes and disruptions in international supply chains. The WTO has recently warned that increasing fragmentation of the global trading system could have serious economic consequences, making it essential for countries like Pakistan to strengthen the competitiveness of their businesses and facilitate legitimate taxpayers.

Saigol said that taxpayers, particularly small and medium-sized businesses, sole proprietors, professionals and individuals, require sufficient time to compile financial records, reconcile accounts, obtain information from banks and other institutions, and complete their returns through the FBR’s online system. The September 30 deadline is approaching rapidly, and a large number of taxpayers are still in the process of completing their documentation.

He said that the government’s objective should be to broaden the tax base and promote voluntary compliance rather than create unnecessary difficulties for taxpayers who want to fulfil their legal obligations. A reasonable extension would provide taxpayers with an opportunity to file accurate and complete returns instead of rushing to meet the deadline or facing penalties because of incomplete documentation.

The LCCI President said that extension would not represent any concession or waiver of tax liability. It would simply provide additional time for taxpayers to complete their statutory filing requirements properly.

He added that a facilitative approach by the FBR would strengthen confidence between the tax authorities and the business community and could ultimately result in better compliance.

He pointed out that the FBR had also extended the return filing deadline in the past in response to requests from trade bodies, tax practitioners and the general public. For Tax Year 2025, the FBR extended the September 30 deadline first to October 15 and subsequently to October 31.

Faheem Ur Rehman Saigol said that the government was already making efforts to document the economy and increase the number of active taxpayers, and such efforts would be better served through facilitation, simplicity and adequate time for compliance. He stressed that businesses should be encouraged to remain within the formal tax system rather than face avoidable difficulties in meeting filing requirements.

He therefore urged the government to immediately announce an extension of the income tax return filing deadline for Tax Year 2026 from September 30 to at least October 31, 2026, so that taxpayers can complete their returns accurately and the FBR can achieve higher and more effective compliance.