Confusion and Concerns Surround New E-commerce Taxation in Pakistan
The introduction of new taxation regimes in the 2025-26 fiscal year has left local and international e-commerce platforms, sellers, and courier services in Pakistan uncertain about their future. The Federal Board of Revenue has implemented taxes on online transactions, leading to confusion and fear among stakeholders. The Pakistan E-commerce Association has announced protests against the new tax measures, citing concerns over shrinking profit margins and increased burdens on customers.
Confusion and fear prevail among e-commerce platforms, sellers, and courier services in Pakistan due to new taxation regimes introduced in the 2025-26 fiscal year. The Federal Board of Revenue (FBR) has identified key e-commerce platforms like Facebook, Apple/Tunes, Google, AliExpress, Netflix, Temu, and Spotify. The total transactions by these platforms exceed Rs317.78bn. The government has implemented new taxes on sales and other levies, causing uncertainty among local and international platforms. The Pakistan E-commerce Association (PEA) has announced protests against the new tax measures, citing concerns over shrinking profit margins and increased burden on customers.
While the new laws aim to facilitate women businesspersons, confusion and lack of knowledge have led to panic. Courier companies are advising e-commerce businesses to complete tax registrations to continue using delivery services. The new tax regime includes an 18% GST on online purchases, additional taxes for non-filers, and mandatory buyer data reporting by banks and intermediaries. Failure to comply may result in penalties. The FBR aims to regulate e-commerce for buyer protection and streamlined processes for future regulations.
According to the source: Dawn.
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