PCDMA warns ‘Abrupt rollout of FBR’s new e-invoicing disastrous for SMEs’

KARACHI: The Pakistan Chemicals & Dyes Merchants Association (PCDMA) has warned that the abrupt rollout of the Federal Board of Revenue’s (FBR) new e-invoicing system, set to take effect from August 1, 2025, could prove disastrous for Small and Medium-sized Enterprises (SMEs) due to a lack of preparation and consultation with stakeholders.

Terming the move unfeasible and poorly timed, PCDMA Chairman Salim Valimuhammad urged the FBR to delay implementation, arguing that most traders lack the technical infrastructure, training, and resources necessary to comply with the new digital requirements.

PCDMA Chairman labelled the sudden implementation as “unjust and disastrous” for businesses, particularly Small and Medium-sized Enterprises (SMEs). He criticized the FBR for rolling out the system without conducting awareness campaigns, training programmes, or seminars to equip taxpayers for compliance.

“The FBR’s schedule is completely detached from ground realities,” Valimuhammad said. “Most taxpayers lack the IT infrastructure, technical expertise, and even stable electricity needed to adopt this system.”

He highlighted that small traders, in particular, are ill-equipped to register, issue vouchers, and generate e-invoices overnight without proper guidance.

The PCDMA chairman also pointed out the absence of stakeholder consultation prior to the issuance of the SRO 1413 (l)12O25.

He noted that many businesses have sought a 60-day extension to prepare for the transition, but the FBR has yet to provide a clear roadmap.

Valimuhammad proposed a phased implementation, starting with public limited companies, followed by a performance review before extending the policy to smaller businesses.

“If the e-invoicing system hasn’t been fully successful for companies with turnovers exceeding one billion rupees, how can it be imposed on small traders with even fewer resources?” he questioned.

Expressing willingness to cooperate, Valimuhammad offered PCDMA’s support for industry-wide training.

“If we are educated on this system, we will ensure all our members are trained. I am ready to learn even at this stage in my life, but we must be taught first,” he said.

The PCDMA chairman urged the FBR chairman to defer the e-invoicing mandate until comprehensive training and awareness initiatives are in place, warning that the current approach risks disrupting business operations across the country.

Copyright Business Recorder, 2025