Pakistan’s e-commerce sector is facing strict new tax regulations as the Federal Board of Revenue (FBR) launches a major enforcement drive. The FBR has made it mandatory for all online sellers to register with the tax authority, aiming to bring the fast-growing digital economy under the tax net.
Under the new rules, banks, courier companies, and online platforms must cut off services to unregistered sellers. If they fail to comply, they could face serious penalties.
According to the FBR, this move ensures transparency and prevents tax evasion in the digital space. “There’s no more hiding in the shadows,” the FBR stated, emphasizing the need to document all online business activity.
Strict Tax Deductions on Every Order
Courier services and payment gateways will now act as tax agents. They are required to deduct taxes on every order, including cash-on-delivery (COD) transactions, and submit the collected amount to the FBR.
For COD payments, couriers must withhold 2% tax before handing over the cash to sellers. Digital payments made through banks or fintech platforms will face a 1% withholding tax.
New Reporting Tools for Transparency
The FBR has also introduced three new reporting tools — STR-34, STR-35, and STR-36. These tools are designed to track and record every transaction. Online marketplaces, courier services, and sellers must file monthly reports or risk legal consequences.
These changes are backed by amendments to the Income Tax Ordinance and the Sales Tax Act. The FBR has officially declared unregistered sellers as non-compliant, and any business dealing with them may be held legally responsible.
Immediate Action Required
All sellers must now register with the FBR without delay. Banks, couriers, and digital platforms have been ordered to suspend services to any seller who fails to meet this requirement.
This enforcement marks a major step toward expanding Pakistan’s tax base and regulating the online economy.
In other news read more about FBR Faces Criticism Over Rs397 Billion Tax Loss Due to Negligence and Inaction
