ISLAMABAD: The Federal Board of Revenue (FBR) has rolled out a series of revisions to the sales tax return filing procedure, which have considerably slowed the return submission process nationwide, as per various media outlets.

Even with the deadline extensions for February and March 2025 filings, persistent technical glitches in the updated system continue to frustrate taxpayers.

Tax professionals noted that the latest changes demand submission of more technical details, intended to enhance monitoring and control mechanisms within the system. However, the increased complexity has made compliance more difficult for general businesses and taxpayers.

A significant modification includes the requirement to mention an eight-digit Harmonized System (H.S.) code and specify quantities of sold goods in Annex C of the return. This step aims to establish a digital framework for better tracking of transactions and curbing fake invoices and revenue leakages.

Nonetheless, the heightened technical specifications have created difficulties for many. Accurately providing H.S. codes requires expert understanding, and the risk of incurring penalties for mistakes has led to hesitation in filing.

Furthermore, new annexures for recording production and inventory data have been introduced. However, these updates were implemented without thorough consideration of their operational feasibility, leading to additional confusion.

Taxpayers are calling on the FBR to resolve these issues promptly and offer user-friendly guidelines to reduce compliance burdens and avoid further submission delays.