PCDMA Warns of Late-Filing Penalties as FBR IRIS Technical Glitches and Annex H1 Bottlenecks Cripple Tax Returns..
✧ GENERATE BRIEFING +
The Pakistan Chemicals & Dyes Merchants Association (PCDMA) has raised serious concerns over persistent technical glitches within the Federal Board of Revenue’s (FBR) IRIS portal and the operational hurdles introduced by SRO 350(I)/2024. In an urgent appeal to the FBR Chairman, PCDMA Chairman Salim Valimuhammad warned that complications tied to Annex H1 (Statement of Stock for Traders) have created rigid, mandatory dependencies between taxpayers and their suppliers, severely bottlenecking monthly sales tax return filings nationwide. Despite commercial willingness to maintain strict tax compliance, thousands of registered businesses face imminent threats of late-filing penalties due to structural delays and system errors. Representing roughly 750 members in the chemical trade sector, the PCDMA has submitted a formal presentation detailing the technical friction points and outlining a proposed permanent framework to streamline filing procedures, urging tax authorities to expedite corrective measures and safeguard compliant taxpayers.
Pakistan Chemicals & Dyes Merchants Association (PCDMA) Chairman Salim Valimuhammad has warned that persistent technical glitches in the Federal Board of Revenue’s (FBR) IRIS system have created a major bottleneck in the timely filing of Sales Tax Returns, forcing registered taxpayers into precarious dependence on their suppliers and exposing them to the risk of penalties for late filing.
In a letter to the Chairman FBR, Salim Valimuhammad urged him to take up the matter on an urgent basis, warning that the problems arising from recent changes in the IRIS system were making it increasingly difficult for taxpayers to comply with statutory deadlines.
He particularly highlighted the difficulties associated with Annex H1 — Statement of Stock for Traders — introduced following the rollout of SRO 350(I)/2024, saying the requirement had created an unnecessary dependency of taxpayers on their suppliers for the completion and submission of Sales Tax Returns.
“Most taxpayers have become dependent on their suppliers to submit their returns,” the PCDMA chairman said, adding that this rigid dependency had considerably slowed down the pace of return filing across the country.
As a result, he said, a large number of sales tax-registered persons were finding it difficult to submit their returns by the prescribed due dates, despite their willingness to remain compliant.
Salim Valimuhammad said the issue was not confined to the chemical trade but was affecting sales tax-registered businesses across the country. PCDMA, which represents around 750 members and is one of the major trade bodies representing the chemical sector, had therefore approached the FBR directly to seek a practical and permanent solution.
He said the association had prepared a detailed presentation identifying the problems arising from Annex H1 and had also proposed a mechanism to resolve the issue permanently. The proposed solution, he added, would provide general relief to taxpayers and help accelerate the filing of Sales Tax Returns.
The PCDMA chairman stressed that the objective was not to undermine tax compliance but to remove the technical and procedural obstacles preventing taxpayers from filing returns within the prescribed time.
He urged the Chairman FBR to take up the matter on a priority basis and facilitate an early resolution in the larger interest of taxpayers and the government alike.
The association maintained that a smoother and more workable filing mechanism would not only reduce the burden on businesses but also improve the pace of tax-return submission and strengthen overall compliance.
Salim Valimuhammad also offered PCDMA’s assistance for any further clarification or technical elaboration required to understand the issue and implement the proposed solution.
