FBR’s E-Invoicing System Criticized for Lack of Consultation

Karachi: The Pakistan Chemicals and Dyes Merchants Association (PCDMA) has criticized the Federal Board of Revenue (FBR) for introducing an e-invoicing system without prior stakeholder consultation or awareness sessions, labeling it a nightmare for taxpayers.

PCDMA Chairman Salim Valimuhammad voiced concerns over the absence of engagement with stakeholders before the system’s implementation. He highlighted that businesses were left unprepared due to the lack of orientation or training sessions.

The e-invoicing system was enforced for corporate entities on July 1, with a scheduled rollout for the non-corporate sector on August 1. Valimuhammad questioned the unilateral enforcement, noting businesses were neither consulted nor their concerns considered.

He pointed out growing anxiety in the business community, citing increased complexity in filing sales tax returns. Valimuhammad urged the government to collaborate with businesses and provide more time for adaptation, warning that abrupt decisions could disrupt business activities.

Valimuhammad called for the FBR to engage with stakeholders to address grievances and make necessary adjustments, cautioning that failure to do so could harm tax collection and affect the national economy.

The policy, introduced via SRO 709(I)/2025 on April 22, 2025, mandates integration of IT systems with the FBR’s digital platform for e-invoicing. This has left the business community facing confusion and operational challenges.