Karachi: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) convened an emergency meeting to address serious technical flaws in the Federal Budget 2025-26. Presided over by Acting President Saqib Fayyaz Magoon at the FPCCI headquarters, the meeting condemned specific clauses of the Sales Tax Act 1990, particularly the mandatory e-invoicing and e-filing orders, deeming them unworkable. The meeting was attended by representatives of various trade bodies, chambers, and the Federal Board of Revenue (FBR) and Pakistan Revenue Automation Limited (PRAL).
Magoon criticized clauses 37A and 37AA of the Act, stating that they treat honest taxpayers like “criminals.” He pointed out that the FBR, possibly struggling to meet revenue targets, is resorting to unwarranted harassment of law-abiding taxpayers.
FPCCI Senior Vice President Asif Sakhi assured the trade sector’s support in tax collection, but not at the cost of their self-respect. Vice President Nasir Khan warned of potential civil unrest stemming from economic mismanagement, stating that businesses are being forced to consider closures to avoid financial losses.
FPCCI Senior Member Haji Muhammad Afzal condemned the FBR’s failure to curb unregistered commercial activities, demanding action against such operations. Pakistan Vanaspati Manufacturers Association (PVMA) Chairman Umer Rehan warned that the new stipulations could cripple entire industries. While supporting digitalization, he stressed the impracticality of implementation under the current regulations, citing the inability to issue cash receipts exceeding Rs. 200,000, which are no longer accepted as financial instruments.
The Towel Manufacturers Association expressed outrage at being labeled “thieves” despite suffering losses and losing export clients to neighboring countries, while international buyers are questioning their future production hub. LNG association representatives voiced concerns over SRO 709(I)/2025, pointing to the escalating costs of e-invoicing and the climate of fear in Regional Tax Offices (RTOs). The Pakistan Security Agencies Association reported integration challenges with PRAL systems and highlighted the FBR’s unresponsive online platforms.
Chief Commissioner Large Taxpayers Office (LTO) Karachi, Zubair Bilal, promised continued dialogue with the business community.