Karachi, September 15, 2025 – The Federal Board of Revenue (FBR) is considering an extension of the deadline for sales tax integration of registered taxpayers’ invoicing systems with its central platform, following growing concerns from the business community.
While industry leaders had initially requested a three-month extension, officials indicate that the FBR may grant only a short relief of 15 to 30 days.
The Karachi Chamber of Commerce and Industry (KCCI) has been at the forefront of the appeal. Its President, Muhammad Jawed Bilwani, urged FBR Member (Inland Revenue Operations) to not only extend the digital integration deadline but also establish facilitation desks within trade bodies. These desks, he suggested, should provide free-of-cost support through Pakistan Revenue Automation Limited (PRAL), enabling businesses to complete the process without unnecessary delays.
Bilwani highlighted that although many taxpayers are committed to compliance, thousands of businesses have struggled to register through the four designated integrators approved by the FBR. The delay, he said, was not due to unwillingness but rather the large volume of registrations required within a very limited timeframe.
As per SRO 1413(I)/2025, issued on August 1, 2025, deadlines for key categories have already lapsed. Public companies, importers, and firms with turnover exceeding Rs. 1 billion were required to complete integration by August 10, 2025. Since September 1, 2025, the FBR has had the authority to issue penalties of Rs. 500,000 under Section 25A of the Sales Tax Act 1990 to any non-compliant entity.
Industry representatives argue that while large corporations are equipped to comply, small and medium enterprises (SMEs), particularly seasonal importers, face significant challenges. Immediate penal action, they warn, could create financial distress and disrupt business operations. Instead, they call for a phased approach that accounts for varying capacities across sectors.
To further ease the transition, KCCI has proposed an online Helpdesk, supported by a dedicated FBR focal person, accessible via Zoom. This would allow real-time troubleshooting and ensure businesses gain practical assistance while implementing the new invoicing system.
Ultimately, stakeholders believe that extending the deadline and supporting businesses with effective guidance will promote smoother integration, wider compliance, and long-term benefits for the digital tax ecosystem. The FBR is expected to announce its decision in the coming days.