He called for the existing September 30 deadline to be extended to October 31, 2026, saying additional time would facilitate taxpayers and help improve compliance.
Saigol said the business community was operating in an unusually challenging environment, with domestic businesses facing high operating costs while international trade and economic conditions remained uncertain.
He said global trade was also facing challenges due to geopolitical tensions, changing tariff regimes and disruptions in international supply chains. He referred to recent warnings by the World Trade Organization that increasing fragmentation of the global trading system could have serious economic consequences.
The LCCI president said Pakistan needed to strengthen the competitiveness of its businesses while facilitating taxpayers who were willing to fulfil their legal obligations.
He said taxpayers, particularly small and medium-sized businesses, sole proprietors, professionals and individuals, needed sufficient time to compile financial records, reconcile accounts and obtain information from banks and other institutions before completing their tax returns through the FBR's online system.
According to Saigol, the September 30 deadline was approaching rapidly, while many taxpayers were still completing their documentation and preparing their returns.
He said the government's focus should be on broadening the tax base and encouraging voluntary compliance instead of creating unnecessary difficulties for taxpayers seeking to meet their legal obligations.
Saigol said a reasonable extension would allow taxpayers to submit accurate and complete returns rather than rushing to meet the deadline or facing penalties because of incomplete documentation.
He clarified that extending the deadline would not amount to any concession or waiver of tax liability.
The LCCI president said the proposed extension would simply provide taxpayers with additional time to complete their statutory filing requirements properly.
He added that a facilitative approach by the FBR could strengthen confidence between tax authorities and the business community and ultimately contribute to better compliance.
Saigol also pointed out that the FBR had extended tax return filing deadlines in the past following requests from trade bodies, tax practitioners and the general public.
For Tax Year 2025, the FBR had initially extended the September 30 deadline to October 15 and subsequently extended it further to October 31.
The LCCI president said the government was already taking steps to document the economy and increase the number of active taxpayers. He maintained that these efforts would be better supported through facilitation, simplicity and adequate time for compliance.
He stressed that businesses should be encouraged to remain within the formal tax system rather than face avoidable difficulties in meeting filing requirements.
Saigol therefore urged the government to immediately announce an extension of the income tax return filing deadline for Tax Year 2026 from September 30 to at least October 31, 2026, saying the move would give taxpayers sufficient time to complete their returns accurately and help the FBR achieve higher and more effective compliance.
