ByThe Karachi Chamber of Commerce and Industry (KCCI) has strongly criticized the Federal Board of Revenue (FBR) for introducing new conditions that have made sales tax return filing nearly impossible for traders and small businesses.
KCCI President Muhammad Jawed Bilwani condemned the latest requirement mandating the submission of monthly stock statements, consumption data, and detailed purchase, sales, and stock reports under notification 55(i)/2025. He highlighted that these stringent conditions create significant obstacles for small-scale businesses and traders, making timely submission of monthly sales tax returns unmanageable.
KCCI has expressed serious concerns over these new conditions, as small traders and business owners are finding compliance increasingly difficult. Many small-scale importers, traders, and wholesalers operate with limited resources and cannot afford professional accountants or tax consultants due to their low profit margins. The requirement to provide extensive data reporting, including H.S. code-wise classifications, purchase records, sales transactions, and stock balances, places an undue burden on businesses that primarily rely on family-based manpower or minimal employees.
Instead of simplifying tax procedures, KCCI argues that the FBR is introducing unnecessary complexities that further burden the already documented sector. Inflation, harsh economic conditions, high tax rates, and security concerns are already discouraging investment and business growth, particularly in Karachi. These excessive compliance requirements exacerbate the challenges faced by the business community rather than providing any relief or facilitation.
Firmly rejecting these new filing mandates, KCCI has urged the Chairman of the FBR to reconsider the matter. President Jawed Bilwani has suggested that instead of enforcing these requirements on a monthly basis, the FBR should consult with relevant stakeholders and implement a more practical solution. He proposed that such data should be required annually rather than monthly, allowing businesses adequate time to compile and submit accurate reports without undue stress.
The KCCI remains committed to advocating for the interests of the business community and continues to demand fair and practical tax policies from the government. Moving forward, KCCI plans to engage with policymakers to push for a more business-friendly taxation system that supports economic stability and growth.
