E-commerce Platforms in Pakistan Face New Tax Regime

Web Desk: The fiscal year 2025-26 is expected to be challenging for ‘e-commerce platforms in Pakistan’ as the government has introduced a new tax regime. Online sellers, courier companies and international companies have shown serious concerns about their future operations in the country.

New Tax Regime for E-Commerce Businesses in Pakistan

• 18% General Sales Tax (GST) will now apply to all online purchases, similar to traditional retail stores.
• Additional taxes will be imposed on non-filers—buyers and platforms who fail to submit tax returns.
• Courier companies and online marketplaces will be allowed to process and ship orders from properly registered businesses only.
• Banks and online payment intermediaries will be required to maintain buyer records and submit quarterly reports to the Federal Board of Revenue (FBR).

According to the FBR, this initiative has three key objectives:

1. Formal registration of e-commerce businesses
2. Broaden tax collection
3. Buyer protection from fraud and scams

The FBR has identified major international platforms such as Facebook, Google, Apple, Netflix, AliExpress, and Spotify, as well as local platforms like Daraz, OLX, Zameen, and PakWheels, which collectively process over Rs317 billion in annual transactions.

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Pakistan’s E-commerce Association Announces Protest

The Pakistan E-commerce Association (PEA), along with the Chainstore Association of Pakistan, has announced a protest against these new tax measures, calling it detrimental to both the growth of online businesses and the interests of consumers. They argue that the additional tax burden will be shifted to the buyers ultimately.

E-commerce sellers and courier companies have been asked to immediately register with the FBR or face disruption to their business operations. However, the absence of detailed policy guidelines and legal clarity has created an atmosphere of confusion and fear in the industry.

The FBR is expected to issue a policy statement soon to clarify the uncertainties.