ISLAMABAD – Pakistan’s growing digital economy witnessed another jolt as Federal Board of Revenue (FBR) slapped unprecedented crackdown on country’s booming e-commerce sector in new regulations that have set off alarm bells for online sellers.
From now onwards, all online sellers must register with FBR as the apex tax collection agency issued strict orders to banks, courier services, and digital platforms, to cut ties with unregistered sellers or face penalties.
FBR called it push to bring digital economy into tax net, as there’s no more hiding in the shadows.
Courier companies and payment gateways will be tax agents as they must deduct taxes on every single order, including cash-on-delivery (COD) transactions, and submit them to the FBR.
FBR introduced three powerful new reporting tools STR-34, STR-35, and STR-36 which are designed to ensure no transaction slips through the cracks. All platforms, couriers, and sellers must file monthly disclosures or risk legal action.
The new enforcement drive is underpinned by updated sections of the Income Tax Ordinance and Sales Tax Act. Unregistered sellers are now officially off-limits — and any marketplace or courier working with them could face legal fire.
Under latest regulations, thtere will be 1% withholding tax applies to all digital payments via banks, fintechs, and payment gateways. 2% Cash on Delivery tax will be cut directly by couriers before handing over money to sellers.
All online sellers operating in Pakistan are now required to register with FBR. Banks, courier services, and digital marketplaces have been instructed to immediately suspend services to any seller who fails to comply.
