Islamabad, July 31, 2025: In a major relief for online shoppers, the federal government of Pakistan has withdrawn the recently imposed 5% tax on foreign e-commerce platforms such as Temu, SHEIN, and AliExpress. This move is expected to lower product prices that had surged following the 2025–26 budget announcement.
The Federal Board of Revenue (FBR) confirmed the update through an official notification, stating that the Digital Presence Proceeds Tax will no longer apply to goods and services ordered from international platforms and delivered in Pakistan. The tax had originally been introduced under the Digital Presence Proceeds Tax Act, 2025 to regulate foreign tech companies operating digitally within the country.
“The Digital Presence Proceeds Tax shall not apply to digitally ordered goods and services supplied from outside Pakistan,” the FBR stated in its circular.
The removal of this tax, effective July 1, 2025, is part of a broader strategy to strengthen trade relations with global partners, particularly the United States. As a result, the cost of shopping on international platforms like Temu, SHEIN, and AliExpress in Pakistan is expected to decline.
Read More: Honor Pad X7 Debuts with 8.7-Inch Display, Massive Battery
However, while this development is promising, consumers should note that prices will not fully return to their pre-budget levels, primarily due to the existing 18% general sales tax (GST) that still applies.
Read More: Nayatel to Offer Microsoft AI Cloud Services in Pakistan
What This Means for Online Shoppers in Pakistan
- Temu, SHEIN, and AliExpress prices in Pakistan will decrease, making international shopping more affordable.
- The removal of the 5% digital tax is effective from July 1, 2025.
- However, the 18% GST on imported goods remains unchanged.
- The move is seen as a step toward promoting digital commerce and improving Pakistan’s global trade relations.
