KATI Seeks Three-Month Extension on Sales Tax E-Invoicing Deadline

Karachi: The Korangi Association of Trade and Industry (KATI) is urging the Federal Board of Revenue (FBR) to extend the deadline for mandatory sales tax e-invoicing by three months, citing concerns over unpreparedness within the business community. Junaid Naqi, KATI’s president, highlighted the potential for widespread non-compliance and disruptions if the transition is rushed.

Naqi acknowledged the FBR’s efforts towards digitization but criticized the current deadlines of July 1, 2025, for corporate taxpayers and August 1, 2025, for non-corporate entities as impractical. He noted that most businesses have yet to prepare for integration with the FBR’s e-invoicing system.

Persistent technical issues have plagued the system’s rollout, according to Naqi, causing significant worry among businesses. He emphasized the need for a gradual and thoughtful implementation of digitization to avoid jeopardizing operational efficiency and transparency goals.

Naqi warned that without adequate preparation time, the new policy might undermine its objectives. He suggested that a three-month extension would allow businesses to make necessary adjustments and align their systems sustainably, thus avoiding compliance challenges and technical difficulties.

Calling for a focus on facilitation rather than pressure, Naqi stressed that the business community is ready to comply but requires realistic timelines. He underscored the crucial role of industry and commerce in the economy, asserting that revenue targets depend on their sustainability and support.