KARACHI: Karachi Chamber of Commerce and Industry (KCCI) has strongly raised concerns over the recent Tax Laws (Amendment) Ordinance, 2025, promulgated on May 2, 2025.
Speaking to media after a seminar on digital invoice registration and integration organised by KCCI in collaboration with PRAL, president KCCI Javed Bilwani questioned the implementation of the new regulations, particularly the provision allowing FBR representatives to be stationed at manufacturing facilities. “How can an FBR representative sit in our factories,” he remarked, highlighting the business community’s apprehension about excessive oversight.
He said that the Chamber has formally communicated its reservations to the FBR through an official letter and expressed hope that the government would reconsider its decision.
He said that section 175C allows the FBR to station officers directly at business premises to monitor production and services, inviting unwarranted interference in day-to-day operations and opens doors to potential harassment and administrative overreach.
Furthermore, he said that a major point of contention in new digital invoicing regulations proposed by the Federal Board of Revenue (FBR) is that the FBR reportedly did not consult with the Karachi Chamber before finalising the digital taxation framework.
While acknowledging that “e-invoicing and digital transactions are the future,” the Chamber criticised the implementation approach, suggesting that better outcomes could have been achieved if businesses had been taken into confidence.
The deadline for compliance—June 1 for the corporate sector and July for the non-corporate sector—was described as “insufficient” by president KCCI, calling on the FBR to extend these timelines.
The Chamber also used the platform to criticize recent economic policies, particularly regarding interest rates. The President noted that the one percent reduction in interest rates announced recently was “inadequate” for business growth and alleged that the Prime Minister had failed to fulfil his promise of bringing interest rates down to single digit.
During the seminar, FBR’s Director General IT Ayesha Farooq along with chief commissioner LTU Zubair Bilal and others stated that digital transformation is ongoing at FBR and e-invoicing is one factor in this transformation.”
She confirmed that consultations with the business community are continuing to address their concerns.
According to her, the e-invoicing system will initially apply to the Fast-Moving Consumer Goods (FMCG) and corporate sectors with various software solutions currently under development to facilitate the transition.
Copyright Business Recorder, 2025
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