• New regime includes 18pc GST, additional levies for non-filers, mandatory buyer data reporting by banks and intermediaries
• Online sellers and courier services waiting for clarity over the future of their businesses
ISLAMABAD: Confusion and fear prevail not only among local and international e-commerce platforms regarding the imposition of new taxation regimes with the advent of the 2025-26 fiscal year, but also among sellers and courier services, who are waiting for clarity over the future of their businesses.
The Federal Board of Revenue (FBR) has compiled a list of eight key e-commerce platforms that provide tangible and intangible items, including music, movies, and software.
The largest selling platform was Facebook, with transactions worth more than Rs12.31bn. Others include Apple/Tunes, Google, AliExpress, Netflix, Temu, and Spotify, while the largest transactions are held under the category of others.
The total amount of transactions by these international and local online platforms, such as Daraz, OLX, Zameen, and PakWheels, exceeds Rs317.78bn.
The government has added a new chapter to the income tax regime, and taxes have been imposed on sales tax and other levies.
The overall situation has led to confusion among leading local and international platforms regarding the tax collection mechanism.
Incidentally, international e-commerce platforms have requested that their local partners clarify the tax collection mechanism in Pakistan, effective July 1.
“Our client has tasked us with looking into the outcome and talking to various courier companies to determine the impact on rates and tax filing mechanism,” said a senior executive of a PR company.
Due to a lack of clarity over the situation, neither he nor any executive of Pakistani e-commerce platforms was willing to disclose their identity; however, one executive pointed out that even the upgraded Income Tax law 2025 had not been uploaded to the FBR website.
One of the key stakeholders, the Pakistan E-commerce Association (PEA), has announced a protest against the new taxation regime.
Its Chairman Omer Mubeen warned that the new tax measures would shrink profit margins and put an additional burden on customers.
He added that there are growing concerns over harsh eCommerce taxation policies; the PEA, along with other relevant stakeholders, including the Chainstore Association of Pakistan (CAP), will continue to protest the move on social media and write letters to the concerned authorities.
While the new laws were facilitative for women businesspersons, confusion and a lack of knowledge have created panic among many.
The courier companies have also begun advising e-commerce businesses and individual sellers to complete their tax registrations to continue availing themselves of delivery services.
A local seller from Islamabad stated that e-commerce was still in its early stages in the country. Instead of supporting the industry, the government was making it difficult for entrepreneurs to do business.
Meanwhile, responding to the query, a senior official of the FBR said that the process would materialise after Ashura, which falls on Sunday, and most of the activities in this regard will commence from Monday.
He added that there were three main objectives of the new tax regime on e-commerce: registration of businesses, enhancement of tax collection, and streamlining the process for future regulations.
“There is a need for regulation of e-commerce too for the protection of buyers from frauds or deceptions by any unknown seller and that is not possible without registration of the businesses,” FBR official added.
Under the new regime, without proper registration, courier companies and online marketplaces will not be authorised to process or ship such orders.
Similar to physical retail outlets, an 18pc general sales tax (GST) has been imposed on all goods and services bought online, while additional taxes apply to non-filer purchasers and the platforms as well.
However, banks and online payment intermediaries will be required to maintain records of buyers for quarterly filing. The new tax regime also imposes penalties on intermediaries for failing to collect the due taxes or file the necessary documents with the FBR.
Published in Dawn, July 6th, 2025