Pakistan Chemicals and Dyes Merchants Association has warned that persistent technical glitches in the Federal Board of Revenue’s IRIS system are creating major hurdles for the timely filing of sales tax returns. The association said the problems were leaving registered taxpayers dependent on their suppliers and exposing businesses to the risk of penalties for late submission.
In a letter to the FBR chairman, PCDMA Chairman Salim Valimuhammad urged the tax authority to address the issue on an urgent basis, saying recent changes to the IRIS system had made it increasingly difficult for taxpayers to meet statutory filing deadlines. He particularly highlighted problems relating to Annex H1, the Statement of Stock for Traders, which was introduced following the implementation of SRO 350(I)/2024. According to Valimuhammad, the requirement has created an unnecessary dependency on suppliers for completing and submitting sales tax returns. He said most taxpayers have become dependent on their suppliers to submit their returns, adding that this rigid dependency had significantly slowed the filing process across the country. As a result, he noted, many sales tax registered businesses are struggling to submit their returns within the prescribed deadlines despite their willingness to remain compliant.
Valimuhammad said the issue was not limited to the chemical trade and was affecting sales tax registered businesses across Pakistan. The association, which represents around 750 members and is among the major trade bodies in the chemical sector, has approached FBR seeking a practical and permanent solution. He said PCDMA had prepared a detailed presentation highlighting the problems associated with Annex H1 and had also proposed a mechanism to resolve the matter permanently, which he said would provide relief to taxpayers generally and help accelerate the filing of sales tax returns. The PCDMA chairman stressed that the association’s objective was not to weaken tax compliance but to remove technical and procedural barriers that were preventing taxpayers from filing their returns within the prescribed timeframe, urging the FBR chairman to treat the matter as a priority and facilitate an early resolution in the interest of both taxpayers and the government.
The association said a smoother and more workable filing mechanism would reduce the administrative burden on businesses, improve the pace of return submissions and strengthen overall tax compliance. Valimuhammad also offered PCDMA’s assistance for any further clarification or technical input required to understand the issue and implement the proposed solution. The association expressed hope that FBR would address the technical difficulties promptly and introduce a more efficient mechanism that enables taxpayers to meet their statutory obligations without unnecessary procedural hurdles, reflecting a broader concern among trade bodies about the reliability of digital tax infrastructure as filing requirements continue to evolve under the current sales tax framework.
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