PCDMA criticizes FBR over premature e-invoicing rollout

Tax Budget

Karachi, September 2, 2025 – The Pakistan Chemical and Dyes Merchants Association (PCDMA) has expressed strong disapproval over what it calls a premature and poorly planned rollout of the Federal Board of Revenue’s (FBR) electronic invoicing system.

In a statement, PCDMA Chairman Salim Valimuhammad criticized the tax authority for introducing e-invoicing without prior training, awareness sessions, or consultations with key stakeholders. He said that the abrupt move has created confusion within the business community at a time when Pakistan is already facing serious economic and environmental challenges.

“We are not opposed to e-invoicing,” Valimuhammad clarified. “But its sudden enforcement, without preparation or support, shows little understanding of ground realities — including power shortages, flooding, and inadequate digital infrastructure.”

Concerns Raised by PCDMA

• Lack of training programs for traders.

• Insufficient awareness campaigns to explain compliance procedures.

• No phased implementation plan, starting with larger corporations first.

• Risk of widening the compliance gap, especially for small businesses.

The PCDMA chief urged the government to reconsider its approach and introduce e-invoicing gradually. He proposed that the system first be implemented for multinational and public limited companies, with small- and medium-sized enterprises included only after proper capacity building.

He further emphasized that many small traders do not possess computers, specialized software, or the technical skills required to comply with a fully digital invoicing regime.

PCDMA also criticized FBR for failing to consult industry representatives before launching the system, despite the fact that association members are already registered with tax departments and meet their filing obligations.

Valimuhammad warned that without extending deadlines and investing in infrastructure, the move could disrupt business operations and erode trust between the government and the trading community.