There’s good news for Temu shoppers in Pakistan. The federal government has officially removed the 5% tax on digital goods and services ordered from abroad. This change is expected to lower prices for many international online platforms, including Temu.
The decision was approved by the federal cabinet earlier this week. Following this, the Federal Board of Revenue (FBR) issued a notification confirming the tax withdrawal. The new policy is part of the Finance Bill 2025, which Parliament has now passed.
According to the FBR, this exemption will take effect starting July 1, 2025.
Previously, Pakistani consumers had to pay an additional 5% tax when purchasing digital products and services from international sellers. This tax applied to a wide range of digital platforms and was intended to boost national revenue. The FBR had expected to collect around Rs40 billion annually through this tax.
The removal of the tax is likely to benefit both global tech companies and consumers. Temu shoppers in Pakistan, in particular, may see prices return to earlier levels, or at least stabilize. Just last month, Temu increased prices for Pakistani customers by up to 300%, citing the new indirect taxes as the reason.
That price hike triggered frustration among local buyers, who turned to social media to express their concerns. It also highlighted the challenges of online cross-border shopping in the country.
With this new tax relief, platforms like Temu, Google, and other international e-commerce services may now find it easier to operate in Pakistan. Shoppers, too, are likely to welcome the change, as it could make digital purchases more affordable once again.
The government is responding to public feedback and economic pressure by rolling back the tax. This move could improve the digital shopping experience and reduce the financial burden on regular online consumers.Also Read: Temu Faces Backlash in Pakistan After Sudden Price Hike Due to New Taxes. Temu’s earlier decision to raise prices sparked criticism across Pakistan. Here’s how it unfolded.
