The new taxation regime set for the 2025-26 fiscal year has caused uncertainty among local and international e-commerce platforms, as well as sellers and courier services, all awaiting clarity on how the changes will impact their businesses.

According to a report published by Dawn, the Federal Board of Revenue (FBR) has identified eight major e-commerce platforms involved in transactions of tangible and intangible goods, including platforms like Facebook, Apple/Tunes, Google, AliExpress, Netflix, Temu, and Spotify. The total transaction value of these platforms, along with local e-commerce giants like Daraz, OLX, Zameen, and PakWheels, exceeds Rs317.78 billion.

As part of the new income tax regime, the government has imposed taxes on sales and other levies, which has left both international and local platforms unsure about the new tax collection process. International platforms have requested local partners to clarify the new tax mechanisms as of July 1.

The new tax regime imposes an 18% general sales tax (GST) on all goods and services purchased online, with additional taxes applying to non-filers and platforms. 

Furthermore, banks and online payment intermediaries will be required to maintain transaction records for quarterly filing, with penalties for failing to collect taxes or submit required documents to the FBR.

The report cited a senior PR executive who mentioned that the e-commerce sector, including courier services, is seeking a clearer understanding of the tax filing process and potential rate changes. He highlighted that even the updated Income Tax Law for 2025 was not yet available on the FBR’s official website.

The Pakistan E-commerce Association (PEA) has voiced its opposition to the new tax measures, fearing they will reduce profit margins and burden consumers. Chairman Omer Mubeen expressed concerns over the impact of these policies, particularly in light of the lack of understanding and the potential harm to the e-commerce sector. 

The PEA, along with the Chainstore Association of Pakistan (CAP), has organized protests and plans to continue their advocacy via social media and official channels.

Although the new laws aim to support women entrepreneurs, the uncertainty surrounding their implementation has caused panic within the industry. Courier companies are advising e-commerce businesses to complete their tax registrations to continue using delivery services.

The FBR sources said that the primary objectives of the new tax system are to ensure business registration, improve tax collection, and streamline future regulations.

They explained the importance of regulating e-commerce to protect consumers from fraud, a goal that requires proper business registration. Under the new rules, unregistered businesses will not be allowed to process or ship orders through courier companies or online marketplaces.