PCDMA Raises Alarm Over Looming E-Invoicing System Implementation

KARACHI: The Pakistan Chemicals and Dyes Merchants Association (PCDMA) has issued a stern warning regarding the Federal Board of Revenue’s (FBR) imminent rollout of an e-invoicing system, scheduled for August 1, 2025. The association claims the move could severely impact small and medium-sized businesses due to insufficient preparation and lack of stakeholder consultation.

PCDMA Chairman Salim Valimuhammad criticized the timing and feasibility of the e-invoicing system, urging the FBR to reconsider its implementation timeline. Valimuhammad underscored that many traders are not equipped with the necessary technical infrastructure, training, or resources to meet the new digital compliance requirements.

In a recent statement, Valimuhammad labeled the swift implementation as “unjust and disastrous,” particularly for small and medium-sized enterprises (SMEs). He expressed concern over the absence of awareness campaigns, training programs, or seminars to prepare taxpayers for the transition, criticizing the FBR’s approach as disconnected from the realities faced by businesses.

Valimuhammad highlighted that many small traders lack the IT infrastructure, technical expertise, and even stable electricity required to generate e-invoices. He emphasized the need for a phased approach, starting with public limited companies and evaluating the system’s performance before extending it to smaller businesses.

The PCDMA chairman also noted that numerous businesses have requested a 60-day extension to prepare for the transition. However, the FBR has not provided a clear roadmap. Valimuhammad expressed willingness to collaborate with the FBR on industry-wide training initiatives, emphasizing that comprehensive education is crucial for successful implementation.

He urged the FBR chairman to defer the e-invoicing mandate until robust training and awareness initiatives are established, warning that the current plan could disrupt business operations nationwide.