Urooj Niazi 
tax on online shopping budget 2025 in pakistan
Pakistan may tax online shopping Budget 2025-26
According to the Pakistan Government, taxation for online shopping will be made available in the upcoming Budget 2025–26. Online shopping has become widely popular, particularly among urban, middle-class consumers, and the Federal Board of Revenue (FBR) views it as a new stream of unreported revenue.
Among the proposals being put forward is a 3% tax to be levied on customers who pay cash on delivery. Delivery riders would collect this and pay it to the FBR. Manufacturers could potentially add another 15% GST to the price. The talks are starting today between Pakistan and the International Monetary Fund (IMF) to approve the budget. The IMF has asked to reduce expenditure and increase tax revenue, as Pakistan needs to meet its GDP deficit target of 5.1%.
The FBR’s previous attempts to tax small traders and vendors with initiatives like Tajir Dost have failed. So now, as the online sector is expanding, they are looking at e-commerce.
The FBR is also planning tax on local purchases paid for using debit and credit cards. Federal excise duty is only applicable to payments made abroad, with no other tax in Pakistan.
However, tax experts say taxing e-commerce too early will slow the industry. Yet, officials think it is the right time to tax e-commerce before the market grows too large, and before it is too difficult to regulate – ie tax.
If included in the budget, it will make online shopping in Pakistan an expensive pastime.
