ISLAMABAD – FBR dropped hammer on E-Commerce sellers in major update for digital economy. Federal Board of Revenue (FBR) unleashed strong crackdown on the e-commerce sector, making tax registration mandatory.
Under bold new reforms, unregistered online sellers are officially outlawed, with banks, courier companies, and online marketplaces ordered to block their services immediately. If you are selling online in South Asian nation and not registered with the FBR, your days are numbered.
Under new directives, one percent tax on all digital payments made through banks, fintechs, and gateways.
Two percent tax on all cash-on-delivery (COD) orders, deducted by couriers before you get paid.
This aggressive enforcement comes under Sections 6A and 153(2A) of the Income Tax Ordinance, updated as part of FBR’s mission to rope in the exploding digital marketplace.
Under new law, it’s now illegal for any online marketplace or courier service to work with unregistered sellers. Non-compliance will lead to penalties, audits, and shutdowns. Whether you’re an aggregator, mobile app, or independent e-store, courier companies are now the tax watchdogs. They must deduct tax, report every sale, and file monthly returns or face the consequences.
The sales tax regime has also been tightened. Under Section 3(7A), tax collected on online sales will be treated as the final liability for small sellers with no input tax credits allowed.
Even foreign businesses selling to Pakistani customers are no longer safe. Amendments to Sections 14(1A) and 14(1B) now require every e-commerce entity domestic or international to register under Pakistan’s tax system.
Online platforms, payment processors, and courier services must now submit detailed monthly tax statements to the FBR, listing every transaction, payment, and seller.
FBR’s campaign is being hailed as the most aggressive step ever taken to bring the digital market under the tax net. Experts say it will either clean up the industry or cause chaos for small sellers unprepared for the new system.
