The Federal Board of Revenue (FBR) expects to generate an additional Rs65 billion in the upcoming fiscal year through proposed taxation measures targeting the booming e-commerce sector and international digital platforms supplying goods and services in Pakistan..
One of the key proposals is to increase the advance tax on offshore digital services from 10% to 15%. This tax will apply to global tech giants such as Google and YouTube, with the dual objective of raising revenue and encouraging these companies to establish a formal presence in Pakistan.
Additionally, the FBR has proposed withdrawing the exemption on the import of solar panels and related parts, replacing it with an 18% General Sales Tax (GST). This measure alone is expected to generate Rs20 billion in additional revenue. However, the Pakistan Peoples Party (PPP) has expressed strong opposition to this proposal. If Parliament ultimately blocks the imposition of GST on solar imports, the government will need to devise alternative measures to cover the anticipated revenue shortfall.
E-commerce platforms have also come under the FBR’s lens.
The newly proposed Digital Presence Proceeds Tax targets international e-commerce entities delivering goods into Pakistan and is projected to bring in Rs39 billion from July 1.
Meanwhile, taxation on domestic e-commerce—via both income tax and sales tax—is expected to add another Rs26 billion to government coffers.
