FPCCI calls for tax incentives to boost digital payments

The Federation of Pakistan Chambers of Commerce and Industry called for a coordinated set of incentives to speed up the shift to cash-free transactions, according to Mettis Global. Speaking at a roundtable in Karachi on Tuesday, stakeholders described digital payments as a useful tool for greater transparency, better documentation and a wider tax base.

FPCCI President Atif Ikram Sheikh said the session centred on a framework of possible tax relief, cashback schemes and discounts to encourage digital payment use. He argued that such measures could support documented transactions, stronger tax compliance and growth of the formal economy, and described the move away from cash as an urgent economic necessity.

Representatives of the State Bank of Pakistan, the Federal Board of Revenue and the Sindh Revenue Board took part in the discussion alongside private sector participants. The SBP reaffirmed its commitment to building a safe, durable digital payments system, while the FBR noted that it was weighing incentives for digital transactions. The SRB pointed to the restaurant sector in Sindh, where digital payments attract an 8% sales tax rate against 15% for cash.