Commercial banks in Pakistan have requested a deferral in implementing new tax deductions on digital payments for e-commerce merchants and gateway operators. The request was made due to the lack of an automated system to process the taxes, as mandated under the latest government policy.
While the government recently imposed 2–5% taxes on digital transactions within local and foreign e-commerce platforms, exemptions were granted for foreign online sellers and social media advertising.
Banking sources revealed that no taxes are currently being deducted due to the absence of infrastructure. Through the Pakistan Banks Association, financial institutions have formally approached regulators for a delay until a workable solution is developed.
The State Bank of Pakistan (SBP) reports that over 213 million digital transactions were made in Q3 FY25, reflecting a 40% increase in volume and totaling Rs. 258 billion in value. Approximately 10,000 e-commerce operators are registered with banks nationwide.