The Pakistan Business Council (PBC) has demanded the Federal Board of Revenue (FBR) to immediately remove an important mistake in its IRIS tax filing system, which wants taxpayers to support charitable donations and pension funds.
The PBC has failed to properly count the IRIS system tax credit under the Income Tax Ordinance, Section 61 and 63 of 2001. In a letter addressing FBR Chairman Rashid Linjeel on October 8, 2025, the PBC, according to PBC, has failed to accurately calculate the tax credit under the IRIS system Income Tax Ordinance, Section 61 and 63 of 2001.
The council explained that the voice of the issue was introduced under section 4 AB of the Finance Act 2024 when calculating tax credit. The 10 % income tax for surcharge, individuals and taxable income association is more than Rs 10 % of the income tax. 10 million, under the law “tax”.
However, in the IRIS system, this surcharge has not been included in the total taxable income when contradicting the clear language of this law, computing credit.
The PBC wrote, “This contradiction is causing delays in filing of income tax declarations,” the PBC wrote, urging the PBC, the FBR and its faulty, Pearl, to improve the issue and ensure compliance with the law. The council emphasized that tax credit is required in both the law and the respective parts, including the whole amount, including the surcharge.
The letter was also copied from Finance Minister Mohammad Aurangzeb, Minister of State for Finance Bilal Azhar Kayani, and SAPM from industries and production Haroon Akhtar Khan.
The PBC called for immediate action to resolve the issue, warned that continuous delays could damage taxpayers’ confidence and interfere with timely refund.