ISLAMABAD – In major breakthrough for e-commerce landscape, Pakistani government has officially withdrawn five percent tax on foreign digital platforms, bringing good news for both online shoppers and booming digital retail sector.
The decision was confirmed by Federal Board of Revenue (FBR), and now global platforms like Temu, SHEIN, and AliExpress will no longer be taxed under Digital Presence Proceeds Tax Act, 2025 and will eventually cut prices for consumers.
FBR notification said the tax will not apply to digitally ordered goods and services supplied from outside Pakistan. The rollback, effective from July 1, 2025, aligns with Pakistan’s efforts to strengthen international trade ties, particularly with US as part of a broader strategy to open new digital and economic frontiers.
Industry experts say development is a much-needed boost for Pakistan’s e-commerce ecosystem, which has witnessed rapid growth but was recently dampened by new budget taxes.
Although an 18pc sales tax still applies, the removal of additional 5pc levy will ease burden on consumers and encourage online spending. Retailers and logistics providers alike are viewing the move as a signal of the government’s support for digital trade.
