Islamabad, 6 June 2025: E-Commerce in Budget 2025 is set to become a focal point of Pakistan’s new fiscal strategy, as the Federal Board of Revenue (FBR) prepares to introduce a broad-based sales tax on major online platforms.
According to senior officials, the move is aimed at expanding the country’s tax base in line with the International Monetary Fund’s (IMF) policy recommendations.
Under the proposed Finance Bill for 2025–26, the FBR has drafted measures to impose an 18% sales tax on digital marketplaces such as Daraz, OLX, Zameen, and PakWheels. This measure is part of a larger effort to increase tax revenue and formalize the rapidly growing online retail and services sector.
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Sources close to the matter confirmed that the new taxation plan targets platforms facilitating e-commerce transactions between private buyers and sellers, with the aim of capturing previously untaxed digital activity.
The implementation of this policy forms part of the government’s strategy to meet its ambitious Rs14.3 trillion tax revenue goal for the next fiscal year, as agreed under the IMF’s structural reform program.
E-Commerce in Budget 2025 signals a significant policy shift as authorities move to regulate the digital economy, which has so far operated with minimal direct taxation. The FBR views this as a crucial step toward equitable taxation and leveling the playing field between online and brick-and-mortar businesses.
Economists note that the decision reflects mounting pressure from the IMF to diversify Pakistan’s revenue streams, especially by targeting under-taxed sectors. While the measure could help reduce fiscal imbalances, it may also lead to higher costs for end-users and sellers on these platforms.
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The tax is expected to be officially unveiled in the federal budget announcement later this month. As stakeholders await clarity on the implementation timeline and compliance mechanisms, E-Commerce in Budget 2025 remains a closely watched development that could redefine how digital trade operates in Pakistan moving forward.
