The National Board of Revenue (NBR) has extended the deadline for submitting value-added tax (VAT) returns for July and August to 15 October, allowing businesses to file without facing any penalty.
The revenue authority issued the instruction today (1 October), saying no fine would be imposed on businesses that submit their VAT returns for the two months by the extended deadline.
The move comes after the NBR found a sharp decline in VAT return submissions and collections for July and August.
In the last budget, the government introduced a facility allowing businesses to submit VAT returns and make payments quarterly, instead of every month.
However, after reviewing VAT returns and collections for the first two months of the current fiscal year, the government decided to revert to monthly VAT return submissions. The Cabinet Committee approved the reversal earlier this week, with the revised system taking effect from the current month.
The NBR has now given businesses additional time to submit their pending July and August returns without penalties, aiming to encourage compliance with the filing requirements.
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