KARACHI, June 4, 2025 – A storm of confusion has erupted among Pakistan’s traders as the Federal Board of Revenue (FBR) fumbles the rollout of a controversial new tax regulation, leaving businesses scrambling to comply. The Pakistan Chemicals & Dyes Merchants Association (PCDMA) has slammed the FBR for its “shocking lack of clarity” over SRO 55 of 2025, which demands that all traders – from importers to retailers – file detailed stock reports in the complex Annex H1 form starting March 2025.
Salim Valimuhammad, PCDMA’s outspoken chairman, didn’t hold back, accusing the FBR of leaving traders in the dark with no clear guidelines or official communication on how to navigate the new rules. “It’s an absolute mess,” Valimuhammad fumed, pointing out that most traders filed their March 2025 returns without submitting Annex H1, simply because the FBR failed to explain the process. The result? A bureaucratic nightmare that’s left businesses unable to declare opening stock in their April returns, even as June rolls on.
The chaos deepened when traders, desperate for answers, were forced to engage in back-and-forth battles with the FBR. After relentless pressure, the tax body caved, allowing revised returns without the need to tweak Annex A or C or beg for commissioner approval. But for many, the damage was done. “Traders are still struggling to file their April 2025 sales tax returns,” Valimuhammad revealed, warning that the FBR’s poor communication risks derailing compliance altogether.
In a bold move, PCDMA is now demanding a 60-to-90-day grace period for traders to submit Annex H1 after filing returns, mirroring the 120-day window given to manufacturer exporters. “The FBR needs to wake up and work with trade bodies before unleashing these rules,” Valimuhammad urged, calling for clear deadlines and proper guidance to prevent future fiascos.
As Pakistan’s traders grapple with the fallout, all eyes are on the FBR to see if it can clean up its act – or if this tax turmoil will spiral further out of control.
