The Pakistani government is making aggressive efforts to increase tax revenues, with a new focus on the digital economy. Authorities are now planning to impose a 15% to 18% sales tax on major online platforms.
According to sources familiar with the matter, the Federal Board of Revenue (FBR) is preparing to introduce an 18% sales tax on popular online platforms such as OLX, Daraz, Zameen, and PakWheels in the upcoming fiscal year. The goal is to broaden the tax base and meet conditions set by the International Monetary Fund (IMF).
Finance Bill 2025-26: Key Highlights
- New 18% sales tax likely to be introduced on online marketplaces.
- Applies to both buyers and sellers operating through these platforms.
- Aims to increase tax revenues and fulfill IMF structural reform requirements.
- Part of the government’s plan to achieve its Rs. 14.3 trillion tax collection target.
This marks a major policy shift in the taxation of the digital economy. Online platforms, which have experienced rapid growth in recent years, are now being tapped as a new revenue source.
If approved, the tax could affect online retail prices and influence consumer behavior, potentially making goods and services more expensive on digital platforms.
The proposal is currently under review and is expected to be officially presented in the Finance Bill 2025-26, which will be announced later this month.
