Islamabad, July 2, 2025: Pakistan’s leading courier companies have begun informing E-commerce sellers and online traders about a new tax regime set to take effect from July 2025, as per the Finance Bill 2025.
Under the new policy, courier operators will deduct 2% withholding tax and 2% sales tax on Cash on Delivery (COD) items and directly deposit the amount to the Federal Board of Revenue (FBR) on behalf of the sellers. A formal notification by a major courier firm emphasized that this move aligns with government instructions to bring digital sellers into the formal tax net.
The notification also urged unregistered sellers to immediately register with the tax authorities. Without sales tax and income tax registration, courier services and online marketplaces will be barred from processing or delivering their shipments. “We strongly encourage online sellers to ensure registration with the FBR,” it added.
Currently, over 2,000 courier companies operate across Pakistan, including TCS, Leopards, Pakistan Post, M&P, SpeedeX, DHL, FedEx, BlueEx, Trax, Call Courier, and SWYFT. Their business has grown in tandem with the country’s booming E-commerce sector.
According to the FBR, courier companies have been designated as tax collection agents because they hold seller invoices. These operators are now responsible for collecting taxes from online businesses and transferring them to the government.
However, the move has sparked concern among industry stakeholders. Shoaib Bhatti, President of the Pakistan E-commerce Association (Karachi Chapter), warned that these new taxes will hurt the growth of E-commerce and digital trade. “Large marketplaces might absorb the costs, but small and medium online sellers will likely shift the burden onto customers,” he said.
He further pointed out that rising taxes, fuel prices, and utility charges are already squeezing profit margins. “Expect delivery charges to go up, especially for domestic and intracity orders,” he added.
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As per State Bank of Pakistan (SBP) data, nearly 8,000 E-commerce merchants are registered with the banking system. Meanwhile, FBR officials clarified that casual sellers and women selling from home are exempt from mandatory registration under the revised tax framework.
