The Federal Board of Revenue (FBR) has set a Rs. 200,000 transaction limit for cash payments on e-commerce Cash on Delivery (CoD) orders. This decision was announced through Circular No. 02 of 2025-26 (Income Tax), dated August 12, 2025.
The move supports the government’s ongoing push toward a cashless economy. Section 21(s) of the Income Tax Ordinance, 2001, confirms that this cash limit applies to retail outlets as well.
FBR explained that the new limit aims to promote digital payments and reduce dependence on cash transactions. It is also expected to improve transparency, simplify payment processes, and curb tax evasion.
E-commerce businesses and consumers must now comply with the Rs. 200,000 cash limit for CoD orders. Authorities believe this step will strengthen Pakistan’s shift toward digital financial systems.