Karachi Chamber of Commerce and Industry (KCCI) President Muhammad Jawed Bilwani has criticized a new Federal Board of Revenue (FBR) policy, claiming it makes it nearly impossible for small-scale businesses and traders to operate.
He was referring to the “complex” sales tax return filing requirements introduced by the FBR through notification 55(i)/2025. Under the new policy, monthly stock statements, consumption data, and purchase, sales, and stock reports must be filed in monthly sales tax returns. Bilwani said the KCCI was under pressure from small traders and business owners as it made it difficult for anyone operating without in-house accountants or tax professionals.
“They often operate with family-based manpower or a limited number of essential employees. The requirement to file detailed information on goods, including H.S. code-wise positions, purchases, sales, and balances in terms of quantity and value, is a daunting task,” he noted.
The KCCI official lamented that instead of simplifying tax compliance and record-keeping, the FBR was burdening the already documented sector with further restrictions. He said inflation, a challenging business environment, high tax rates, and pressing law and order issues were already discouraging investment and business operations in Pakistan, particularly Karachi. Rather than facilitating the business community, the increasing and unnecessary compliance requirements are harming it, he warned.
Strongly opposing the new filing requirements, Bilwani urged the FBR chairman to address the pressing issue. He said the tax body should have consulted with the business community and other stakeholders prior to implementing such orders. “A more feasible approach would be to require such information on an annual basis, allowing sufficient time for compliance instead of imposing it monthly,” he suggested.