Friday, August 1, 2025

FBR Removes Tax on Online Purchases From Outside Pakistan

FBR has officially stopped the enforcement of the Digital Presence Proceeds Act Tax starting from July 1, 2025. This means that the tax rules under this act will no longer apply to any products or services that people in Pakistan order online from other countries.

Earlier, the Digital Proceeds Tax Act 2025 was introduced to tax goods and services that were purchased digitally and brought into Pakistan by foreign companies or sellers.

The aim was to bring more online businesses under the tax net as more people started buying from international websites.

However, the FBR has now decided to suspend this tax, saying that from July 1 onwards, no company or business will have to pay this tax on digital orders sent to Pakistan. This step is expected to provide some relief to online shoppers and businesses that rely on importing digital goods or services.

Many people who order things online have welcomed this decision, as it will likely make buying from international sellers a little cheaper. Some small businesses that depend on foreign digital services may also benefit from this suspension.

Experts believe this move could help boost the country’s growing e-commerce sector by making digital trade smoother and less expensive for both sellers and buyers.

At the same time, the government may look into revising or replacing the tax with a new plan in the future to balance revenue needs and support digital trade. For now, the suspension brings temporary relief to many people and businesses that depend on global online markets.

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