FBR Imposes 18% Sales Tax on Online Shopping in Pakistan
The Federal Board of Revenue (FBR) has introduced a sweeping change to online shopping in Pakistan, implementing an 18% General Sales Tax (GST) on all e-commerce purchases—whether paid through digital transactions or cash on delivery.
Tax to Be Collected at Source
Under the new policy, marketplaces, courier services, and payment processors will now deduct the tax at source before transferring payments to sellers. This tax will be submitted directly to the FBR. Importantly, only registered sellers will be allowed to continue selling online.
Why This Matters for Buyers and Sellers
This move aims to formalize the e-commerce sector, boost government revenues, and ensure compliance. However, the added 18% cost is expected to make online shopping in Pakistan more expensive. Industry experts warn it could lead to higher prices, lower margins, and reduced competitiveness for small businesses.
What You Need to Do
Sellers: Ensure your FBR registration is active.
Buyers: Be prepared for higher total bills at checkout.
With the FBR cracking down, the landscape of online shopping in Pakistan is changing fast. Stay informed to shop smart—and sell smarter.
