The government has decided to impose taxes on individuals conducting online business. Those earning from YouTube and social media will also be required to pay taxes.
According to details, Finance Minister Muhammad Aurangzeb said in the budget speech that goods sold through e-commerce platforms will be taxed. Digitally imported goods and services will also be taxed.
He stated that those conducting business via e-commerce will be required to submit monthly transaction data and tax reports.
The finance minister said there is a proposal to increase the tax rate on interest income by 5%, from 15% to 20%. This decision will apply to passively earned income, not to national savings schemes.
Additionally, there is a proposal to impose a 25% tax on income earned through debt-based investments, while the tax rate on dividends from shares will remain unchanged.
It is worth mentioning that the federal government has proposed an 18% sales tax on online purchases in the 2025–26 budget.
The federal government has also imposed taxes on telemedicine, e-learning, and online banking. Taxes will be enforced on e-commerce, online stores, and marketplaces. Banks will deduct 5% tax on funds received from foreign companies.
According to Finance Minister Muhammad Aurangzeb, banks and exchange companies must submit tax payments before the 7th of each month. Failure to do so will result in action against the respective bank or company. Every social media platform will be required to submit a report every three months. A fine of one million rupees will be imposed for failure to report purchases from abroad.
Foreign companies that fail to pay taxes for three consecutive months will have their remittances suspended. The report must include the buyer’s name, ID card number, date, and amount.
