KARACHI: The Karachi Chamber of Commerce and Industry (KCCI) has raised concerns over persistent internet outages and weak digital infrastructure, warning that these challenges are undermining the effective implementation of the Federal Board of Revenue’s (FBR) e-bilty system.
In its proposals for Budget 2026-27, KCCI highlighted the operational difficulties faced by businesses under the e-bilty regime introduced through Section 40C of the Sales Tax Act and Section 83C of the Customs Act. The system requires digital documentation and tracking of goods movement to improve transparency and strengthen tax compliance.
While supporting the objective of tax documentation, the chamber argued that Pakistan’s current technological infrastructure is not sufficiently developed to support the immediate nationwide implementation of the system.
KCCI recommended that the government withdraw the mandatory e-bilty requirement under Section 40C of the Sales Tax Act. However, if the system is retained, the chamber urged authorities to adopt a gradual and phased implementation approach to minimize disruption to businesses.
The chamber proposed that the e-bilty platform should be provided free of cost to taxpayers and supported by a reliable, secure and error-free digital infrastructure. It also stressed the need for strong safeguards to ensure the confidentiality of taxpayer information and commercial data.
To facilitate a smoother transition, KCCI suggested that no penalties should be imposed during the initial implementation period, allowing businesses adequate time to adapt to the new compliance requirements.
The chamber further called for contingency measures to address operational disruptions caused by internet outages, electricity failures and system downtime, which frequently affect businesses across the country.
According to KCCI, recurring power breakdowns, unstable internet connectivity and technical system failures create significant compliance challenges, particularly for small and medium-sized enterprises (SMEs) that may lack the resources to cope with digital disruptions.
The chamber also noted that few countries have adopted similar systems through immediate mandatory implementation, emphasizing the importance of a business-friendly transition supported by stakeholder consultation and adequate infrastructure.
KCCI maintained that successful digitisation of tax administration depends on reliable technological systems, practical implementation timelines and continuous engagement with the business community.
The recommendations form part of the chamber’s broader Budget 2026-27 proposals aimed at improving ease of doing business while supporting the government’s efforts to expand tax documentation and compliance.
