FBR exempts foreign online purchases from digital proceeds tax
The Federal Board of Revenue (FBR) announced on Wednesday that the digital proceeds tax will no longer apply to goods and services ordered online from abroad, with retrospective effect from July 1.
The decision follows concerns raised after the government, through the Digital Presence Proceeds Tax Act, 2025, imposed new levies on both local and foreign e-commerce marketplaces, making online shopping costlier for consumers in Pakistan.
A notification issued by the FBR clarified: “The Digital Presence Proceeds Tax shall not apply to digitally ordered goods and services supplied from outside Pakistan, by any person, which are chargeable to tax under the said act.”
The development coincided with the conclusion of a Pakistan-US trade deal on Wednesday night, aimed at lowering tariffs between the two countries. While details have yet to be disclosed, officials expressed optimism about its potential to support cross-border trade.
