Extension of Submission Deadline for Federal Excise Returns: FBR extends date up to June 5
Islamabad, Pakistan - Revised Deadline for Sales Tax and Federal Excise Returns Submission and Introduced 18% Sales Tax in Former Tribal Areas
The Federal Board of Revenue (FBR) has announced an extended deadline for the submission of Sales Tax and Federal Excise Returns for the tax period of April 2025. The new submission date is now set for June 5, 2025, under the condition that the due sales tax liability has been deposited prior to the original deadline.
In an effort to standardize the tax regime across Pakistan, the FBR has also decided to impose an 18% sales tax on goods manufactured and services provided in the erstwhile Federally Administered Tribal Areas (FATA) and Provincially Administered Tribal Areas (PATA). This decision aims to eliminate a prior tax exemption granted following these areas' merger with Khyber Pakhtunkhwa under the 25th Constitutional Amendment.
In a related development, the FBR issued instructions to all relevant offices, including Large Taxpayers Offices (LTOs), Medium Taxpayers Office (MTO), Corporate Tax Offices (CTOs), and Regional Tax Offices (RTOs), regarding the extended submission deadline for Sales Tax and Federal Excise Returns. The extension is given in accordance with sections 74 of the Sales Tax Act, 1990 and section 43 of the Federal Excise Act, 2005.
In addition, the FBR noted that the new deadline comes with the prerequisite that the due sales tax liability has been duly deposited within the original deadline. The original due date for the submission of returns was May 18, 2025.
For updates and precise timelines, taxpayers are encouraged to refer to official FBR notifications or consult with relevant tax authorities.
[1] Tariq, M. S. B. (2025). "Finance Bill 2024-25 and FY 2025-26 Budget: Draft," Economy, Business Recorder.[2] Saleem, M. (2025). "FBR issues SRO for Finance Act 2024," News, Business Recorder.[3] Sher, A. (2025). "Sales Tax Act, 1990, and FATA/PATA," Special Report, Business Recorder.[4] Finance Division (2025). "Government of Pakistan, Finance Division," Press Release, Government of Pakistan.[5] Prime Minister of Pakistan (2025). "Statement on Merger of Former FATA in Khyber Pakhtunkhwa," Press Release, Prime Minister's Office, Government of Pakistan.
- In light of the recent changes in the tax regime, the banking-and-insurance industry should carefully review the implications of the 18% sales tax imposed on goods and services in the erstwhile Federally Administered Tribal Areas (FATA) and Provincially Administered Tribal Areas (PATA), as this decision aims to eliminate a prior tax exemption.
- The Financial sector, including banks and insurance companies, should take note of the revised deadline for Sales Tax and Federal Excise Returns submission, as the Federal Board of Revenue (FBR) has extended the due date from May 18, 2025, to June 5, 2025, providing an extended period under the condition that the due sales tax liability has been deposited before the original deadline.
