FBR Removes Digital Proceeds Tax on Foreign Online Purchases Effective July 1
The Federal Board of Revenue (FBR) removed the digital proceeds tax on online goods and services from foreign sellers. This change is effective retroactively from July 1, 2025. Pakistani consumers will pay less when shopping internationally.
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The government introduced the tax last month through the Digital Presence Proceeds Tax Act, 2025. It applied a 5% tax on purchases from foreign marketplaces. Sellers like AliExpress, Temu, and Amazon faced this new tax. The move raised costs for Pakistani online buyers.
The FBR’s recent notice cancels the tax on goods and services bought from outside Pakistan. Previously, banks and payment gateways collected the tax during payments. Customs held shipments until couriers proved tax payment.
This change will boost e-commerce in Pakistan by lowering costs. It shows the government’s new approach to taxing the digital economy. They want to balance revenue collection with customer convenience.