FBR Takes a U-Turn on Property Declaration in Income Tax Return Forms

The federal government has officially decided to drop the controversial “Estimated Fair Market Value” column from this year’s income tax return forms, after a review by a high-level committee and subsequent approval from Prime Minister Muhammad Shehbaz Sharif.

The decision comes in response to widespread concerns raised by taxpayers regarding the new requirement introduced by the Federal Board of Revenue (FBR) earlier this year.

Background of the Decision

The column in question was introduced in the IRIS tax return system to require taxpayers to declare the estimated market value of their movable and immovable assets. According to the FBR, it was initially added as a data collection tool to support the annual Economic Survey, and it did not affect the assessment of income or tax liability.

However, the move triggered significant pushback from taxpayers and business stakeholders, who argued that it unnecessarily complicated the filing process.

Committee Recommendations

To address the issue, the government formed a special committee chaired by Federal Law Minister Senator Azam Nazeer Tarar.

Other members included:

• Federal ministers for petroleum and finance

• The Attorney General of Pakistan

• The SAPM on Coordination of the Deputy Prime Minister’s Office

• The Finance Secretary

• The FBR Chairman

• The Member Customs

The committee met on September 26, 2025, and after reviewing the implications in detail, recommended removing the column to simplify tax filing and ease the burden on taxpayers.

Prime Minister’s Directive

Following the committee’s recommendations, Prime Minister Shehbaz Sharif promptly gave his approval.

The FBR later issued a statement confirming the decision:

“In pursuance of the directions of the Honorable Prime Minister, and keeping in view the difficulties being faced by taxpayers, the column of ‘Estimated Fair Market Value’ has been removed from the Income Tax Return.”

FBR’s Clarification and Deadline Reminder

The FBR reiterated that the column had no bearing on tax liability and was intended purely for record purposes. It further emphasized its commitment to taxpayer facilitation and called on citizens to ensure timely and accurate filing of income tax returns.

The deadline to file returns remains September 30, 2025.