Karachi, July 10, 2025 — In a significant development, the Peshawar High Court (PHC) has granted interim relief to five oil and ghee manufacturers by issuing a stay order against the Federal Board of Revenue (FBR) in an ongoing dispute regarding mandatory tax integration.
The court issued the stay after the petitioner companies challenged the FBR’s directive requiring them to procure specific hardware and software and integrate their invoicing systems electronically with the FBR’s centralized platform. These companies operate within the jurisdiction of the erstwhile tribal areas and argue that the FBR is overstepping its legal authority.
According to the PHC’s interim order, the court has called upon the FBR and other relevant parties to submit their comments within a fortnight. The matter will then be scheduled for a formal hearing. Until further orders, the court has barred the FBR from taking any adverse action against the petitioner companies.
The manufacturers claim that the FBR’s enforcement of electronic sales tax integration through licensed integrators—such as PRAL (Pakistan Revenue Automation Ltd)—lacks proper legal authorization. They allege that the FBR’s insistence on integration is an infringement on their constitutionally protected rights to conduct lawful business activities without undue interference.
The petitioners maintain that the FBR’s actions compel them to undertake a costly and burdensome technological shift without appropriate legislative backing. They argue that the FBR has no statutory mandate to require such integration, especially in regions with historically distinct tax treatment like the former FATA areas.
A notice has been issued to the FBR to appear before the court on July 15, 2025, for further proceedings. The case has attracted attention within legal and business communities, as it raises important questions about the scope of the FBR’s powers in enforcing digital compliance measures.
This is the fifth time in recent months the FBR has been drawn into court proceedings related to its digital enforcement drives. The court’s decision to pause the FBR’s integration campaign for now marks a temporary win for the manufacturing sector resisting immediate technological mandates.