Business Desk 
Sep 03, 2025
The Federal Board of Revenue (FBR) announced on September 3 a new tax regime for Pakistan's e-commerce sector, mandating that online marketplaces (OMPs) and courier services cease providing services to unregistered sellers, effective July 1, 2025.
With this move, the FBR aims to formalise the digital economy and ensure tax compliance across the rapidly growing online retail landscape.
In an income tax circular, the FBR outlined the new requirements, mandating that all sellers operating through OMPs or e-stores must register with the tax authority and obtain a National Tax Number (NTN).
To note, online platforms and courier services are now legally obligated to deny services to unregistered sellers and submit detailed monthly statements of all transactions conducted through their platforms.
According to the tax authority, this initiative aims to address the informal nature of Pakistan’s e-commerce sector, where a significant number of sellers operate without registration.
To streamline tax compliance, the FBR has launched a simplified registration process to assign NTNs to sellers. Additionally, a withholding tax mechanism has been integrated to ensure tax collection on every digitally ordered transaction.
Under the new tax regime, payments for goods and services ordered online will be taxed under Section 6A of the Income Tax Ordinance. Payment intermediaries, including banks, financial institutions, foreign exchange dealers, and payment gateways, will be required to collect a 1% withholding tax on digital payments.
Moreover, for transactions conducted on a Cash on Delivery (CoD) basis, courier services will collect a 2% withholding tax on the gross amount of receipts.
The FBR clarified that the differential tax rates are designed to incentivise digital payments and support the government’s broader goal of transitioning to a cashless economy.
The tax authority noted that this tax is final and applies to income from both local e-commerce and export transactions. However, taxes under Sections 154 and 154A will not be applicable under this new regime.
The FBR has also introduced penalties for non-compliance. Online marketplaces and courier services that fail to withhold taxes, file statutory statements, or ensure seller registration will face strict fines.
