The federal government has put forward a proposal to impose an 18% sales tax on online shopping as part of the 2025-26 budget.
During the budget presentation in the National Assembly, Finance Minister Muhammad Aurangzeb recommended changes to the Sales Tax Act.
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He highlighted that the fast-paced expansion of online businesses and digital marketplaces has posed difficulties for conventional businesses that follow tax regulations.
To promote fair competition and ensure proper tax compliance, the minister suggested that courier and logistics companies handling deliveries for e-commerce platforms will be responsible for collecting the 18% sales tax from these platforms and depositing it with the government.
