Pakistan has approved a proposal to make the filing of income tax returns fully electronic. The National Assembly’s Standing Committee on Finance endorsed the move, aiming to modernise the tax system and improve compliance. The decision is expected to affect all taxpayers across the country.
Officials from the Federal Board of Revenue said tax returns will now be submitted only through the IRIS online system. They added that manual submission routes will be completely phased out under the new framework. The change is designed to ensure a uniform digital filing process nationwide.
Authorities further said company financial statements will also be submitted in machine-readable formats. They noted that some cities were still allowing manual returns despite earlier digital reforms. The new proposal aims to eliminate remaining inconsistencies in filing methods.
In addition, the committee approved an algorithmic settlement mechanism for selected taxpayers. Under this system, revised returns can be processed without prior approval from tax commissioners. Officials said users opting for this system will also be exempt from certain penalties and surcharges.
The FBR said Pakistan has largely operated a digital tax system since 2013. However, it added that full compliance has not yet been achieved in all regions. Authorities believe the new measures will strengthen transparency and improve efficiency in tax administration.