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Business Recorder
07-05-2025
- Business
- Business Recorder
KCCI and RCCI unite to tackle economic challenges
KARACHI: In a powerful show of unity, two of Pakistan's most influential business chambers, the Karachi Chamber of Commerce and Industry (KCCI) and the Rawalpindi Chamber of Commerce and Industry (RCCI), have joined forces to confront the escalating economic challenges faced by the business community. During a high-level meeting held at the Karachi Chamber of Commerce and Industry on Tuesday, both chambers not only expressed strong opposition to the controversial Tax Ordinance (Amendment) 2025 but also called for the formation of a national alliance of chambers under Inter-Chambers Harmony Committee to amplify their collective voice and demand urgent pro-business reforms from the government. This consensus was reached during the visit of RCCI delegation to KCCI to strengthen ties and chart a unified path forward. The meeting was attended by Chairman Businessmen Group (BMG) Zubair Motiwala, President KCCI Muhammad Jawed Bilwani, Senior Vice President KCCI Zia ul Arfeen, Vice President KCCI Faisal Khalil Ahmed, and members of the KCCI Managing Committee. Representing Rawalpindi Chamber were President RCCI Usman Shaukat, Senior Vice President RCCI Qazi Farooq, Vice President RCCI Fahad Barlas, Group Leader RCCI Sohail Altaf, and Executive Committee Members. Chairman BMG Zubair Motiwala, who joined the meeting via Zoom, emphasized that fragmentation among chambers has historically undermined their influence. 'We must raise a unified voice and work collectively to address the widespread challenges the business community is facing', he stressed. Referring to controversial government directives such as SRO709, SRO350, and the Tax Ordinance (Amendment) 2025, Motiwala warned that such policies are creating an environment of harassment and uncertainty. He proposed the formation of an Inter-Chambers Harmony Committee, comprising representatives from all chambers nationwide, to hold regular monthly meetings to deliberate on common economic issues. 'Nearly 80 percent of the budget recommendations from all chambers highlight similar concerns. Instead of submitting them individually, we must consolidate our voices through this committee and forcefully present a unified front to the government,' he suggested. President KCCI Jawed Bilwani, reflecting on his longstanding relationship with RCCI spanning over two decades, echoed the need for unified advocacy. He highlighted critical national economic issues such as soaring interest rates, excessive taxation, rising energy costs, and Pakistan's deteriorating international reputation. "Unless we act in solidarity, these issues will persist and worsen under continued anti-business policies", he warned, citing the Tax Ordinance (Amendment) 2025 as a clear example of such policies. Bilwani also voiced concerns over the economic impact of Pakistan-India tensions, which are raising doubts among foreign buyers about the timely fulfillment of export orders. He underscored the alarming flight of capital driven by regressive tax policies, noting that thousands of businesses have been registered in the UAE in the past year alone. 'The government's claim of creating a digital, faceless FBR contradicts its actions. Empowering FBR officials to enter business premises will only increase harassment and corruption, negating efforts to create a tax-friendly environment', he asserted. RCCI President Usman Shaukat affirmed that the challenges being faced are shared by all chambers, necessitating a collective and strategic response. 'The business community must act together. The government thrives on a divide-and-rule approach; we must break this pattern by collaborating consistently,' he emphasized. He called for a Charter of Economy that includes measures to rebuild investor confidence, reverse capital flight, and encourage the return of skilled professionals. 'Nationalism has to be exhibited to counter despair and negativity with constructive action,' he added. While acknowledging some improvements in economic indicators such as rising remittances, declining inflation, and a recent 1 percent cut in interest rates, Usman Shaukat maintained that the cost of doing business in Pakistan remains unacceptably high due to persistently steep taxes, energy prices, and borrowing costs. 'A united declaration from all chambers rejecting the Tax Ordinance Amendment 2025 is critical. RCCI strongly protests this ordinance, which introduces coercive tactics and reflects a mindset that continues to squeeze existing taxpayers instead of broadening the tax base', he stated. He appreciated the evolving role of the Special Investment Facilitation Council (SIFC), noting that its new focus on domestic investors alongside foreign investment is a welcome development. President RCCI invited KCCI's leadership and Managing Committee to participate in RCCI's flagship All Pakistan Chambers Conference, aimed at in-depth deliberations on national economic issues and future strategies. Group Leader RCCI Sohail Altaf described the meeting as significant, marking the convergence of Pakistan's two oldest and most influential chambers. He lamented that while the problems faced by the business community are well known, they remain unresolved due to disunity and lack of collective pressure on policymakers. 'The business community must set aside minor differences and act as one. Our survival depends on unity, not individual agendas', he remarked. Sohail Altaf insisted that the business community must remain apolitical and demand resolution of issues based solely on merit, both within government structures and apex bodies like the Federation of Pakistan Chambers of Commerce and Industry (FPCCI). 'The future of Pakistan hinges on industrialization, yet this area is being neglected. We've turned Pakistan into a consumer market instead of a producer', he added. To institutionalize cooperation, Sohail Altaf proposed that RCCI and KCCI explore signing a Memorandum of Understanding (MoU) to coordinate efforts on shared economic goals. 'If these two major chambers come together, it will inspire others to follow suit. Let's act for the collective interest of the business community,' he concluded. Copyright Business Recorder, 2025
Business Recorder
30-04-2025
- Business
- Business Recorder
Non-corporate distributors: PCDA urges FBR to reconsider real-time invoicing mandate
KARACHI: The Pakistan Chemists & Druggists Association (PCDA) has appealed to the Federal Board of Revenue (FBR) to grant an exemption and adopt a phased implementation approach for SRO 709(I)/2025, which mandates real-time electronic invoice integration for all non-corporate registered businesses from June 1, 2025. In a letter addressed to the FBR Chairman, PCDA Chairman Abdul Samad Bhudhani highlighted the severe operational and financial strain the regulation would impose on pharmaceutical distributors—particularly the small and medium-sized enterprises (SMEs) that make up over 80% of the sector. 'While we support FBR's digitization efforts, the current timeline and blanket application of the mandate are neither realistic nor sustainable,' the letter stated. Bhudhani emphasized that pharmaceutical distribution is a high-volume, low-margin industry, where most businesses process between 15,000 to 25,000 invoices monthly and serve thousands of pharmacies across the country, including remote and semi-urban areas with limited digital infrastructure. The PCDA noted that many non-corporate distributors lack the technical capacity, IT resources, or financial ability to comply with real-time invoice integration, a system that requires instant connectivity, synchronization, and validation of every sale with FBR's central database. Drawing parallels with international practices, the PCDA cited Bangladesh and OECD guidelines, where such measures are rolled out in phases, focused on larger entities first, and backed by cost-benefit analyses and stakeholder engagement. The Association has made four key recommendations: Immediate exemption from SRO 709(I)/2025 for non-corporate pharmaceutical importers, distributors, and wholesalers. Phased implementation beginning with corporate entities or those exceeding a fixed annual turnover (e.g., Rs. 500 million), followed by others in 12–18 months. Launch of an industry-wide digital readiness assessment and pilot program to test real time invoicing systems in the pharmaceutical sector. Formation of a joint working group including PCDA, FBR, and FPCCI to design practical and sector-sensitive rollout strategies. Bhudhani warned that an unplanned enforcement of the policy could lead to medicine supply disruptions, closure of small businesses, and a spike in non-compliance—outcomes contrary to the policy's intended goals. He urged the FBR to consider sector-specific realities and adopt a collaborative approach to reform. Copyright Business Recorder, 2025
Business Recorder
25-04-2025
- Business
- Business Recorder
All categories covered: FBR extends new set of rules for e-invoicing
ISLAMABAD: The Federal Board of Revenue (FBR) has extended new set of rules for e-invoicing and integration of sales transactions to all categories of taxpayers (corporate and non-corporate). Talking to Business Recorder, Adnan Mufti, partner at Moore Shekha Mufti, Chartered Accountants explained that the FBR has issued new set of rules for e-invoicing and integration of sales transactions vide Notification vide SRO 709(1)12025 dated 22 April 2025. SRO 709 has been in terms of Rule 150Q(2) of the Sales Tax Rules 2006. SRO 709 has notified the corporate and non-corporate sector to electronically integrate their hardware and software with FBR's computerised system used for generation and transmission of the e-invoice. However, this has left many businesses in a fix who are unable to factor out whether the new scheme is applicable to FMCGs or to entire taxpayers' community. E-invoices integration: FBR sets May 1 deadline for corporate entities Adnan Mufti further explained that originally the FBR had issued SRO 1525 dated 10 November 2023 which introduced Rule 150Q of Sales Tax Rules 2006. In terms of Rule 150Q of such rules, FBR had issued SRO 28 dated 10 January 2024, whereby, subject integration was limited to only FMCG sectors. Such integration was applicable from 1 February 2024. However, recently SRO 69 dated 29 January 2025 brought into place a new and overhauled text of Rule 150Q. The latest SRO 709 has been issued under such revamped Rule 150Q and broadly introduced 2 major changes, i.e., category of taxpayers to whom the rules would apply and date of application thereof. He contended that since previous text of Rule 150Q has been substituted; its underlying SRO 28 has also been done away with. Mufti further stressed out that now the earlier requirements of integration, which was only limited to FMCG sectors, has also been withdrawn and the new set of procedures have been extended to all categories of new category of taxpayers (corporate and non corporate), wef, new deadlines, ie, dates May 2025 and June 2025, as the case may be. Taking out the apparent confusion, Mufti was of the view that the foregoing issue needs to be addressed by FBR either by rescinding SRO 28 dated 10 January 2024 or issuing a clarification to this effect before the matter is taken to superior courts for litigation. He further lamented FBR for prescribing only one week's time for implementation of new scheme by the corporate sector without any consultation with stakeholders, which was impractical. The apparent haste on the part of tax administration is also evident by the fact that the Sales Tax General Orders required to be issued to effect complete implementation of subject scheme, have also not been issued by FBR as yet. Mufti called upon for the need for on boarding all stakeholders including ICAP, PBC, FPCCI and KTBA for effective implementation of the new framework so that all technical/legal glitches of the scheme are satisfactorily removed. Copyright Business Recorder, 2025
