SBP Closure on Labour Day: Ensure Tax Compliance

The State Bank of Pakistan (SBP) has declared a closure on Thursday, May 1, 2025, in observance of Labour Day, a move that impacts financial operations and tax-related deadlines for our clients. The federal government has designated this public holiday to honor International Workers’ Day, resulting in a nationwide shutdown of all banks, as per an official notification.

Labour Day celebrates the global struggle for workers’ rights, including fair wages and regulated hours, often marked in Pakistan with rallies and seminars by trade unions. For businesses, this closure may delay tax payments, filings, and banking transactions, requiring careful planning to meet Federal Board of Revenue (FBR) deadlines.

From a tax law perspective, clients must ensure compliance with FBR regulations, particularly for withholding tax (WHT) remittances and income tax filings due around this period. The bank closure could affect electronic payments, so we advise scheduling tax deposits in advance or utilizing online portals like the FBR’s e-payment system to avoid penalties for late submissions. Additionally, businesses should review payroll tax obligations for employees, ensuring deductions for salaried workers align with Labour Day entitlements.

Our firm recommends clients plan ahead, verify payment schedules, and confirm compliance with FBR deadlines, mitigating risks associated with the Labour Day closure.