Many online shoppers in Pakistan have recently noticed a sharp rise in product prices on international platforms like Temu and AliExpress. In some cases, items that were once affordable now cost three to four times more than before, leaving consumers confused and frustrated.
While it’s easy to assume that the new budget taxes are fully responsible, the reality is more complex. Yes, the Pakistani government has introduced new tax measures aimed at online shopping from international sellers, but those taxes alone don’t explain such massive price hikes.
Under the recently introduced Digital Presence Proceeds Tax Act, a 5% tax is now applied to goods sold in Pakistan by foreign e-commerce platforms. In addition, these platforms are also expected to pay an 18% sales tax, just like local businesses already do.
The government’s aim is to level the playing field. Currently, local manufacturers in Pakistan pay up to 35% income tax and 18% sales tax, while foreign sellers have been able to avoid such charges—until now.
Despite these new tax rules, a 300% price increase seems unusual. Experts suggest that online stores like Temu and AliExpress may have temporarily raised prices to safeguard against any surprise duties or unclear tax enforcement while the policy is still being sorted out.
The good news for online buyers is that these prices may drop once the tax situation becomes clearer. Until then, shoppers are advised to wait for possible adjustments and avoid panic buying.
