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22/08/2026

📢 *FBR Clarifies “Active Taxpayer” Status for Tax Year 2027*

The updated *Sales Tax Act, 1990* explains the compliance requirements for maintaining *Active Taxpayer Status (ATL)*.

*A registered person may lose active status if:*

🔹 Sales tax registration is blocked or suspended under *Section 21*
🔹 Sales tax return *u/s 26* is not filed for *two consecutive tax periods*
🔹 Income tax return *u/s 114* or statement *u/s 115* is not filed within the prescribed due date
🔹 Quarterly or annual withholding tax statement *u/s 165* is not submitted within the prescribed time

📌 *Key Point*
Active taxpayer status under the sales tax regime is linked with *Sales Tax, Income Tax and Withholding Tax compliance*.

✅ Registered persons should ensure timely filing of all applicable returns and statements to avoid losing active taxpayer status for *Tax Year 2027*

31/07/2026

# **FBR's Digital Tax Filing System Needs Urgent Improvement: Taxpayers Deserve a Reliable Experience**

**By: Finance Expert (Tax Consultant)**

Pakistan has made significant progress toward digital taxation over the last decade. The introduction of the **FBR IRIS Portal** was a major step toward making tax filing easier, reducing paperwork, and improving compliance.

However, every year during the return filing season, thousands of taxpayers and tax professionals experience the same problems: technical errors, slow performance, system interruptions, and difficulties completing returns on time.

# # A Recurring Challenge

For **Tax Year 2025** and now during preparations for **Tax Year 2026**, many users have reported practical issues such as:

* Portal loading very slowly during peak hours.
* Unexpected system errors while saving returns.
* Fields that do not validate correctly.
* Difficulty editing previously entered information.
* Frequent session timeouts.
* Delays in releasing stable return forms after the filing season begins.

When millions of taxpayers depend on a single online platform, even small technical problems can result in significant delays, increased compliance costs, and frustration.

# # The Cost Is Paid by Taxpayers

Tax consultants often spend hours resolving technical issues that are unrelated to tax law itself.

Consider these common situations:

* A salaried employee wants to file a simple return but encounters repeated validation errors.
* A freelancer completes the return but cannot submit it because of a portal issue.
* A business owner must visit a consultant multiple times because the system behaves differently on different days.

These delays increase both the financial and time burden on taxpayers.

# # Digital Systems Should Reduce Complexity—Not Create It

Tax administration should make compliance easier.

Instead, many taxpayers find themselves waiting for system fixes rather than focusing on accurate reporting.

When online systems are unreliable, voluntary compliance may suffer because people become discouraged from filing on time.

# # Learning from Other Countries

Many countries have invested heavily in stable digital tax systems that simplify filing.

# # # 🇬🇧 United Kingdom (HMRC)

The UK's online tax services allow taxpayers to:

* File returns electronically.
* View tax history.
* Receive confirmations quickly.
* Access guidance throughout the filing process.

The emphasis is on a user-friendly experience with clear validation before submission.

# # # 🇦🇺 Australia (ATO)

Australia's **myTax** system automatically imports much of a taxpayer's information, including salary and some financial data, reducing manual entry and minimizing errors.

# # # 🇪🇪 Estonia

Estonia is widely recognized for its advanced digital government services. Many residents can complete their tax returns in just a few minutes because much of the required information is already available electronically.

These examples show that technology can significantly reduce compliance costs when systems are designed with taxpayers in mind.

# # What Can Be Improved?

Several practical improvements could make a meaningful difference:

* Thorough testing before new return forms are released.
* Better server capacity during filing season.
* Faster correction of technical bugs.
* More informative error messages.
* Automatic saving of return data.
* Improved mobile compatibility.
* Better communication about known technical issues and expected resolution times.

These enhancements would benefit taxpayers, consultants, and FBR alike.

# # A Strong Digital Tax System Benefits Everyone

Pakistan needs a tax system that encourages voluntary compliance.

When filing is simple and reliable:

* More people become filers.
* Consultants can focus on advising clients rather than troubleshooting software.
* Businesses spend less time dealing with technical problems.
* FBR receives more timely and accurate returns.

# # A Constructive Appeal

Tax professionals across Pakistan appreciate the effort to digitize tax administration. At the same time, users expect a stable and dependable filing platform.

Continual improvement of the IRIS portal should remain a priority so that taxpayers can comply with the law efficiently and confidently.

A modern tax system is measured not only by its laws, but also by the quality of the services it provides to the public.

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# # # 📢 Share for Awareness

If you believe Pakistan deserves a faster, more reliable, and taxpayer-friendly digital filing system, please share this article.

Constructive feedback from taxpayers, consultants, businesses, and professionals can help encourage continuous improvement in Pakistan's tax administration.

**Together, we can support a tax system that is efficient, transparent, and accessible for everyone.**

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