FPCCI calls for tax incentives to boost digital payments

August 26, 2026 (MLN): The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Tuesday called for coordinated incentives and policy measures to accelerate Pakistan’s transition towards a cashless economy, with stakeholders highlighting digital payments as a key tool for improving transparency, expanding documentation and broadening the tax base.

The discussion took place during an interactive roundtable at Federation House, Karachi, bringing together representatives from the State Bank of Pakistan (SBP), Federal Board of Revenue (FBR), Sindh Revenue Board (SRB) and the private sector.

FPCCI President Atif Ikram Sheikh said the session focused on developing a coordinated framework of incentives to encourage the adoption of digital payment methods, including potential tax relief, cashback schemes and discounts.

He noted that such measures could help promote documented transactions, strengthen tax compliance and support the expansion of the formal economy.

Sheikh stressed that Pakistan’s move towards a cashless economy had become an urgent economic necessity, adding that reducing dependence on cash could enhance transparency, lower business costs and improve the country's integration with global markets.

SBP Head of Financial Inclusion Support Department, Ghulam Muhammad Phul, reiterated the central bank’s commitment to facilitating the development of a secure and resilient digital payments infrastructure to support the transition, according to APP.

Meanwhile, FBR Chief Commissioner, RTO, Zafar Rafique, said greater digitalization was essential for broadening the tax net. He added that the tax authority was examining possible incentives for digital transactions to encourage businesses to operate within the documented economy and improve overall compliance.

FBR Chief Commissioner, IR Hyderabad, Sajjad Akbar, said government institutions placed significant importance on the collective feedback and recommendations received from the country's business community.

Senior Member of the SRB, Abdul Hameed Memon, highlighted that the Sindh government was already promoting digital transactions in the restaurant sector by offering a lower sales tax rate of 8% on digital payments, compared with 15% on cash transactions.

FPCCI Senior Vice President Saquib Fayyaz Magoon emphasized the need for stronger collaboration between policymakers, regulators and businesses to bridge the gap between conventional practices and emerging digital solutions.

He maintained that meaningful incentives would be crucial to encouraging the adoption of digital payments, adding that greater documentation, digitalization and taxation should be accompanied by facilitation to ensure the sustainable expansion of the tax base.

Chairman of the Policy Advisory Board at FPCCI, Mian Zahid Hussain, also called for targeted tax relief for digital merchants and other practical incentives, stating that such measures could speed up the documentation of the economy while reducing pressure on already taxed and compliant sectors.

Copyright Mettis Link News