The federal government has proposed a sharp increase in the fee for late tax return filing under Budget 2026-27, raising the amount from Rs. 1,000 to Rs. 25,000.
The move is aimed at improving tax compliance, encouraging timely return submissions, and expanding Pakistan’s documented economy. Tax authorities believe stricter penalties will discourage delays and increase the number of active taxpayers.
The proposed increase represents one of the largest hikes in tax-related penalties in recent years and is expected to significantly impact individuals and businesses that fail to file their returns on time.
