The government is introducing new taxation measures for e-commerce businesses in the upcoming 2025–26 federal budget as part of efforts to expand the tax base and boost revenue generation.

The Federal Board of Revenue (FBR) has proposed a 3% GST deduction on cash-on-delivery orders, with an additional 15% GST to be collected by manufacturers. These measures align with IMF directives aimed at reducing Pakistan’s fiscal deficit.

Additionally, e-commerce platforms may be required to collect and remit GST directly, shifting tax responsibilities onto digital businesses. While officials view this as a strategic revenue opportunity, tax experts warn that these policies might slow e-commerce growth and affect online retail competitiveness.

The proposed changes are set to reshape Pakistan’s digital economy, with businesses closely monitoring the potential impact on consumer purchasing behavior and overall market dynamics.