ISLAMABAD: Goods and services purchased online in Pakistan will now be subject to taxation, following the government’s decision to impose taxes on individuals conducting business through e-commerce platforms.
The reform, announced in the Federal Budget for FY 2025–26, is aimed at bringing online commercial activities into the tax net and enhancing revenue collection.
According to the budget FY 2025-26 unveiled on Tuesday, the use of e-commerce platforms for business will be subject to taxation.
The income tax rate on interest income is proposed to increase by 5%. The tax rate is proposed to rise from 15% to 20%, according to the budget document.
This increase will apply to passive income—income not earned through active means. The proposed tax will not apply to income earned through National Savings Schemes, as per the official budget document.
Businesses operating via e-commerce platforms will be required to submit monthly transaction data and tax reports.
A 25% tax has been proposed on income generated on the basis of loans, according to the budget document. Meanwhile, the tax rate on capital gains from shares remains unchanged.
Earlier in the day, Pakistan’s Finance Minister Muhammad Aurangzeb unveiled the federal budget for the fiscal year 2025–26, with a total outlay of PKR 17.573 trillion, down 7% as compared to the PKR 18.9 trillion budgeted outlay of FY25.
The minister highlighted that economic stability has been achieved through structural reforms, noting, “several measures have been implemented to improve the economy.”
Referring to the recent economic situation, Aurangzeb noted that inflation has come down significantly, while remittances were $36 billion in 10 months.
