The mismanagement in the implementation of the Federal Board of Revenue”s (FBR) new tax regulations has caused significant confusion among the country”s traders. The Pakistan Chemicals and Dyes Merchants Association (PCDMA) has strongly criticized the FBR, stating that under SRO 55 of 2025, effective from March 1, 2025, all traders, including importers, merchants, and wholesalers, are required to submit their stock details in the Annex H-1 form. However, the FBR has not issued any guidance or formal notification regarding this.
PCDMA Chairman Saleem Wali Mohammad said that the new tax regulations have created a difficult situation for traders, as many did not submit Annex H-1 when filing March 2025 returns, due to a lack of clarity from FBR on when and how to submit Annex H-1. As a result, traders were not allowed to declare their opening stock in the April 2025 returns. Following repeated requests from traders, the FBR has allowed amendments to returns without the need for the commissioner”s approval or changes in Annex A and C.
Saleem Wali Mohammad demanded that the FBR provide clear and timely guidance to relevant trade associations and taxpayers before issuing any new SRO to avoid such confusion in the future. He mentioned that traders are still facing difficulties in amending March 2025 returns and filing April 2025 sales tax returns, even though June has already begun. The PCDMA chairman emphasized that just as manufacturers and exporters are given 120 days to submit Annex H, traders should also be allowed to submit Annex H-1 within 60 to 90 days of filing their returns.