ISLAMABAD: The Federal Board of Revenue (FBR) has abolished manual income tax returns and made electronic filing mandatory for all individuals across Pakistan. The move aims to improve tax compliance, transparency, and efficiency within the national tax system.
According to a notification issued through SRO.2071(I)/2025 on Tuesday, the FBR introduced a draft amendment to the Income Tax Rules 2002, formally ending manual submission of income tax returns and withholding statements.
The amendment states that in the case of an individual, electronic filing of both income tax returns and withholding statements will now be compulsory. The directive applies to all taxpayers, regardless of income level, professional category, or region.
Officials said the decision is part of the FBR’s broader digital transformation agenda, which seeks to minimize human interaction, curb tax evasion, and simplify the filing process for citizens.
The online filing system allows taxpayers to submit returns through the FBR’s IRIS portal, which supports real-time validation, error detection, and data integration with other government systems.
Tax experts have welcomed the reform, noting that the shift toward e-filing will streamline tax administration and expand the formal economy. However, they emphasized the need for user support and digital literacy initiatives to help new filers adapt to the system.
This step follows a series of FBR measures focused on digitization, including system integration requirements for distributors and retailers exceeding withholding tax thresholds.
The FBR has invited public feedback on the proposed amendment before it is finalized. Once approved, the rule will take effect immediately for the upcoming tax year 2026.
