In a welcome relief for online shoppers, the federal government of Pakistan has removed the online shopping tax. 5% Relief on popular e-commerce platforms such as Temu, SHEIN, and AliExpress. This change is expected to make online shopping more affordable, especially after the recent price surge due to the 2025–26 budget announcement.
The Federal Board of Revenue (FBR) confirmed the update in an official notification. The notice stated that the Digital Presence Proceeds Tax would no longer apply to products and services ordered from international websites and delivered in Pakistan. This tax had been introduced earlier under the Digital Presence Proceeds Tax Act, 2025 to regulate digital operations of foreign companies in the country.
“The Digital Presence Proceeds Tax shall not apply to digitally ordered goods and services supplied from outside Pakistan,” said the FBR in its circular.
The government’s decision, effective from July 1, 2025. Aligns with a broader strategy to improve global trade partnerships, especially with the United States. As a result, Pakistani consumers should see reduced costs when purchasing from international platforms like Temu, SHEIN, and AliExpress.
However, shoppers must note that the 18% General Sales Tax (GST) remains in effect. So, while prices may drop, they won’t return to pre-budget levels completely.
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What This Means for Online Shoppers
- The 5% digital tax has officially been removed.
- Prices on international e-commerce platforms will decrease.
- GST still applies, so expect partial—not full—relief.
- This move reflects Pakistan’s aim to encourage digital commerce and international trade.
Ultimately, this decision is a positive step for consumers. It reduces the burden on everyday online buyers and shows the government’s willingness to support digital growth.
