KATI urges FBR to extend deadline for sales tax e-invoicing

KARACHI: Junaid Naqi, President of the Korangi Association of Trade and Industry (KATI), has called on the Federal Board of Revenue (FBR) to extend the mandatory deadline for sales tax e-invoicing and integration with the FBR portal by at least three months.

He stressed that the business community is not yet fully prepared for this critical transition and warned that rushing its implementation could result in widespread non-compliance and disruptions to business operations.

While acknowledging and supporting FBR’s digitalization drive, Naqi emphasized that the current deadlines, July 1, 2025, for corporate taxpayers and August 1, 2025, for non-corporate entities are unrealistic, as the majority of businesses have not completed preparations for integration with the FBR’s e-invoicing system. “There have been technical issues and delays since the early stages of this system’s rollout, causing serious concern among the business community,” Naqi said. “We fully support the idea of digitization, as it is the future of tax systems, but it must be implemented gradually and thoughtfully.”

He further explained that without adequate time for training and system readiness, the policy may backfire and undermine FBR’s own goals of transparency and operational efficiency. “Forced and hasty implementation will disrupt business continuity and increase non-compliance,” Naqi warned.

Highlighting the importance of a practical and phased approach, Naqi said, “If a three-month extension is granted, businesses will have sufficient time to adjust, align their systems, and implement the changes in a sustainable manner. Without this flexibility, businesses may face compliance challenges and technical hurdles that will damage confidence and performance.”

He urged FBR to focus on facilitation, not pressure, saying that the business community is willing to comply but needs realistic timelines to do so effectively. “Industry and commerce are the backbone of the economy,” Naqi concluded, “and no revenue targets can be achieved without ensuring their sustainability and support.”

Copyright Business Recorder, 2025