KTBA requests deadline extension for electronic tax integration

KTBA Bar

Karachi, June 30, 2025 – The Karachi Tax Bar Association (KTBA) has formally appealed to the Federal Board of Revenue (FBR) for an urgent extension in the deadline for mandatory electronic integration under the sales tax invoicing system.

The KTBA, representing a large segment of tax professionals and corporate taxpayers, raised concerns over the feasibility of meeting the current integration deadlines amidst technical and administrative hurdles.

In a detailed letter addressed to the FBR Chairman, the KTBA outlined several pressing challenges that are hindering businesses from achieving seamless integration with the FBR’s e-invoicing platform. According to the official FBR notification, corporate taxpayers are required to complete electronic integration by July 1, 2025, while non-corporate taxpayers must comply by August 1, 2025.

The KTBA stressed that despite repeated efforts, the rollout of the e-invoicing and integration regime has encountered numerous obstacles since its inception. Among the primary issues are:

1. Technical complexities and lack of awareness – Many taxpayers, especially in the SME sector, lack the technical capacity and understanding needed to complete the integration process without extensive training and support.

2. Limited availability of licensed integrators – The shortage of certified vendors and system integrators has created bottlenecks, severely slowing the pace of onboarding businesses onto the FBR’s electronic platform.

3. Low success rate of integrations – A significant majority of taxpayers have not yet successfully completed their integration, raising serious concerns about the overall readiness of the system ahead of the approaching deadline.

Citing these genuine concerns, the KTBA has urged the FBR to extend the deadline by at least three months, arguing that such a move would enable taxpayers to comply in a more organized and technically sound manner, without risking disruptions to their business operations.

The KTBA emphasized that the goal is not to delay reform, but to ensure a smooth and inclusive integration process. It expressed hope that the FBR will respond sympathetically and consider a phased implementation strategy, allowing all stakeholders the time and support needed to align with the government’s digital tax compliance vision.