FBR has introduced a new sales tax rule for online shopping by making changes to the Sales Tax Rules 2006.
According to the updated rule, an 18% sales tax will now be charged on all online orders, whether paid digitally or through cash on delivery (COD).
This tax will be collected directly by online marketplaces, courier companies, and payment service providers. These entities will be responsible for deducting the tax from each order and then depositing it into the FBR’s account.
To ensure proper record-keeping, the FBR has also introduced three new monthly reporting forms — STR-34, STR-35, and STR-36.
Online marketplaces will need to submit detailed information about suppliers and their orders. Meanwhile, couriers and payment agents must issue tax deduction certificates to vendors, confirming the amount of tax collected on their behalf.
This new measure is part of the FBR’s broader strategy to bring more businesses into the tax system, especially in the rapidly growing e-commerce sector.
With online shopping becoming more popular in Pakistan, the government sees this as an important step towards increasing tax revenue and ensuring that businesses operating in the digital space follow tax regulations just like traditional stores.
By involving marketplaces, delivery services, and payment providers in the tax collection process, the FBR hopes to make compliance easier while reducing the chances of tax evasion.
The move reflects the government’s commitment to modernizing tax collection methods and strengthening oversight in the digital economy.
