E-invoicing system labelled 'disastrous' for SMEs

Industrial body says traders lack infrastructure for new digital system


Our Correspondent August 03, 2025 1 min read
E-invoicing system labelled 'disastrous' for SMEs

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KARACHI:

The Pakistan Chemicals and Dyes Merchants Association (PCDMA) has warned that an abrupt rollout of the Federal Board of Revenue's (FBR) new e-invoicing system, which took effect from August 1, 2025, could prove disastrous for small and medium-sized businesses because of the lack of preparation and consultation with stakeholders.

Terming the move unfeasible and poorly timed, PCDMA Chairman Saleem Valimuhammad urged the FBR to delay implementation, arguing that most traders lacked technical infrastructure, training and the resources necessary to comply with new digital requirements.

In a press statement, the PCDMA chairman labelled the sudden implementation as "unjust and disastrous" for businesses, particularly small and medium-sized enterprises (SMEs). He criticised the FBR for rolling out the system without conducting awareness campaigns, training programmes or seminars to help taxpayers comply with the new mechanism.

"The FBR's schedule is completely detached from ground realities," Valimuhammad said. "Most taxpayers lack IT infrastructure, technical expertise and even stable electricity supply needed to adopt this system."

He highlighted that small traders, in particular, were ill-equipped to register, issue vouchers and generate e-invoices overnight without proper guidance.

The PCDMA chairman also pointed out the absence of stakeholder consultation prior to the issuance of SRO 1413 (l) 2025. He noted that many businesses had sought a 60-day extension to prepare for the transition, but the FBR had yet to provide a clear roadmap. Valimuhammad proposed a phased implementation, starting with public limited companies, followed by a performance review before extending the policy to smaller businesses.

"If the e-invoicing system hasn't been fully successful for companies with turnovers exceeding Rs1 billion, how can it be imposed on small traders with even fewer resources?" he questioned.

Expressing the willingness to cooperate, Valimuhammad offered PCDMA's support for industry-wide training. "If we are educated about this system, we will ensure that all our members are trained," he said.

He urged the FBR chairman to defer the e-invoicing mandate until comprehensive training and awareness initiatives were in place, cautioning that the current approach risks disrupting business operations across the country.

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