Business Desk 
May 14, 2025
As Pakistan inches closer to the 2025-26 budget, slated to be announced next month, the Federal Board of Revenue (FBR) is planning to expand the tax net by imposing general sales tax (GST) on online shopping.
This development follows the initiation of virtual talks with the International Monetary Fund (IMF) today, aimed at restricting spending and raising tax revenues to meet the IMF’s budget deficit target for the next fiscal year.
Citing sources, Geo News reported that one of the proposals under consideration is to impose a 15% GST on manufacturers, with an additional collection of 3% by delivery services from customers on cash-on-delivery purchases. This amount would be deposited into the national treasury.
The taxation bid for online shopping mirrors the government's similar initiatives executed in the past, with one botched attempt involving bringing millions of small retailers into the formal tax system. However, the FBR is now targeting the country's growing online shopping sector.
A recent study found that the authorities have been failing to tap urban online sales that present a massive tax opportunity.
The taxation authority is also planning to make it mandatory for online marketplaces, including platforms without their own inventory, to collect and deposit GST, despite tax experts warning of a decline for Pakistan’s young e-commerce sector.
