Foreign income: FBR removes reduced tax rate option from IRIS portal for tax year 2026

A small tab removed from an e-filing portal may not seem like major news. But when Pakistan's Federal Board of Revenue (FBR) removes the 'Attribute' tab from its IRIS portal, it changes the tax calculations of thousands of taxpayers with foreign income. The change applies to tax year 2026. M. Amayed Ashfaq Tola, President of Tola Associates, says taxpayers will lose the ability to claim reduced tax rates under double taxation treaties. This increases the risk of incorrect reporting and higher tax liabilities. In blockchain terms, this is a kind of block change: updating one element alters the meaning of the whole chain. A transparent, immutable tax ledger could not so silently remove a taxpayer's legitimate option. But a centralized portal can do it with one click. What happened: Previously, taxpayers with foreign-source income could use the 'Attribute' tab in the IRIS portal to request a reduced tax rate under an applicable double tax treaty. FBR has now removed that option. For tax year 2026, treaty-based reduced rates cannot be claimed through the normal filing flow. Why it matters: Double taxation treaties prevent the same income from being taxed twice. Pakistan relies on foreign investment, remittances, and overseas savings. Removing the digital gateway for treaty benefits creates confusion, possible double taxation, and lower compliance confidence. Tola's warning: Incorrect reporting will rise. Many taxpayers will not know how to claim the right rate. Others may face higher tax demands. The digital reform appears disconnected from tax policy. Broader impact: Foreign investors may see Pakistan's tax environment as less predictable. Taxpayers with foreign assets may hesitate to declare income. Long-term revenue collection could suffer, even if the short-term intent was to increase taxes. What should happen next: FBR should either restore the 'Attribute' tab or issue a clear alternative mechanism. Tax professionals and affected taxpayers should press for an official guideline. The system needs transparency. A blockchain-style trust model reminds us that credibility comes from open, verifiable processes. Tax administration is no exception.