Pakistan FBR Warns of Hefty Penalties After Tax Deadline

The Federal Board of Revenue of Pakistan warned taxpayers that failure to file income tax returns by the September 30 deadline will result in heavy penalties, additional tax liabilities, and potential legal action. Starting October 1, the agency will abolish the late-filer category and implement a steep increase in fines.

Under the new rules, individual penalties will rise from Rs1,000 to Rs25,000. Associations of Persons will face fines of Rs50,000, while companies may be fined up to Rs100,000. The agency also cautioned that providing incorrect information or concealing assets could trigger recovery measures.

To support compliance, the State Bank of Pakistan directed commercial banks to maintain uninterrupted digital payment services and extend branch hours until 10 p.m. on Wednesday for over-the-counter payments. Approximately 4.88 million returns have been filed this tax year, marking an increase from the 3.5 million filed in the previous year.