Karachi Chamber calls for phased implementation of e-bilty system amid concerns over digital infrastructure shortcomings
The Karachi Chamber of Commerce and Industry (KCCI) has identified persistent internet disruptions and inadequate digital infrastructure as major obstacles to the smooth implementation of the Federal Board of Revenue’s (FBR) e-bilty system, urging the government to reconsider its approach in the upcoming Budget 2026-27.
In its budget proposals, KCCI expressed concerns over the operational challenges arising from the e-bilty regime introduced under Section 40C of the Sales Tax Act and Section 83C of the Customs Act, which mandate the digital tracing and documentation of goods movement.
The chamber argued that the system, while aimed at enhancing transparency and tax compliance, has created significant difficulties for businesses due to Pakistan’s existing technological constraints.
Highlighting the challenges faced by the business community, KCCI recommended the removal of the e-bilty requirement under Section 40C of the Sales Tax Act. However, if the government decides to retain the system, the chamber proposed a gradual and phased implementation strategy.
Among its recommendations, KCCI called for the provision of a completely free e-bilty system for taxpayers, the development of robust and error-free FBR infrastructure, and the introduction of safeguards to protect taxpayer confidentiality and business data.
The chamber also proposed that no penalties should be imposed during the initial years of implementation to allow businesses sufficient time to adapt to the new digital requirements. In addition, it urged the government to establish mechanisms to address disruptions caused by internet outages, electricity breakdowns and system downtime.
KCCI maintained that Pakistan currently lacks the universal digital infrastructure necessary for the immediate nationwide implementation of such a system. According to the chamber, frequent power outages, inconsistent internet connectivity, system failures and the resulting operational disruptions make compliance particularly challenging for small and medium-sized enterprises (SMEs).
The chamber further noted that the absence of international precedents for immediate and mandatory implementation of similar systems reinforces the need for a cautious and business-friendly approach.
KCCI emphasised that successful digitisation of tax administration requires reliable infrastructure, adequate stakeholder consultation and a phased transition framework that balances compliance objectives with the operational realities faced by businesses.
The recommendations form part of KCCI’s broader proposals for Budget 2026-27 aimed at improving the ease of doing business while supporting the government’s tax documentation efforts.
