Karachi, July 7, 2025 – The Large Taxpayers Office (LTO) Karachi has assured the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) of its full cooperation in resolving the pressing tax and technical issues raised by the business community, particularly those arising from the newly introduced provisions of the Federal Budget 2025–26.
In a significant development, Zubair Bilal, Chief Commissioner Inland Revenue at LTO Karachi, met with the leadership of FPCCI and pledged to carefully examine the concerns presented by various sectors. He emphasized that a result-oriented, inclusive, and ongoing consultative process would be established between LTO Karachi and the business stakeholders to ensure that grievances are not only heard but addressed efficiently.
The announcement came during a federal budget conference organized at FPCCI Head Office in Federation House, Karachi, chaired by Acting President Saquib Fayyaz Magoon. The conference saw wide participation from trade bodies, chambers, and associations from across Pakistan, with key representation from the Federal Board of Revenue (FBR) and Pakistan Revenue Automation Pvt. Ltd. (PRAL).
Magoon conveyed that the business community finds it nearly impossible to implement certain provisions of the Sales Tax Act 1990, particularly those related to e-invoicing and e-bilty for every consignment. He added that the introduction of Sections 37A and 37B gives the impression that honest taxpayers are being treated like criminals, due to the FBR’s inability to meet its revenue targets through constructive means.
Asif Sakhi, Vice President of FPCCI, emphasized that trade and industry are fully prepared to support the government in responsible tax collection—but not at the cost of dignity and self-respect. Nasir Khan, another FPCCI Vice President, highlighted the absence of clear economic direction in the country, stating that many business owners are considering factory closures to avoid deepening losses.
Haji Muhammad Afzal, a senior FPCCI member, criticized the FBR’s failure to curb unregistered sales, stressing that unregistered businesses are thriving while registered taxpayers face undue scrutiny. Umar Rehan, Chairman of Pakistan Vanaspati Manufacturers Association, warned that strict and impractical conditions—like restricting cash transactions over Rs. 200,000—could result in the shutdown of entire sectors.
The Towel Manufacturers Association echoed this sentiment, citing that international buyers are losing confidence in Pakistan due to the volatile business climate, with some even inquiring whether operations are shifting to Dubai or other countries.
The LNG Association raised specific concerns over SRO 709(I)/2025, especially the high costs involved in implementing e-invoicing infrastructure. Reports of “lockup” setups being created within RTOs were also discussed, allegedly causing harassment of legitimate businesses.
Pakistan Security Agencies Association criticized PRAL for not providing clear guidance on integrating taxpayer systems, stating that FBR portals are not yet capable of supporting the new requirements.