FBR announces new tax rules for online sales, How new rules will affect online sellers?

The Federal Board of Revenue (FBR) has launched a major crackdown on Pakistan’s growing online business sector. The government has introduced new rules to ensure that online sellers, courier companies, and digital marketplaces pay their fair share of taxes and operate within the legal system.

Online Sellers Must Register:

From now on, all online sellers in Pakistan must register with the FBR. The FBR has directed banks, courier services, and marketplaces to stop working with any unregistered sellers. This move aims to formalize online businesses and prevent tax evasion.

Couriers to Deduct Taxes on Orders:

Courier companies and payment services (like COD or online payments) must now deduct sales tax on every order. They must send this tax to the FBR by the 10th of each month and give sellers a tax certificate with all the details.

Monthly Reports Made Compulsory:

The FBR now requires businesses to submit three new forms every month.

• STR-34 – For online marketplaces to report orders and sellers.
• STR-35 – A general return for all involved parties.
• STR-36 – For courier services, especially those acting as marketplaces.
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Digital & COD Payments Also Taxed:

• 1% tax on digital payments via banks or fintechs.
• 2% tax on cash-on-delivery (COD) orders, which couriers must deduct.

Backed by Law – Penalties for Non-Compliance:

Updates to the Income Tax Ordinance and Sales Tax laws support these rules. The FBR will impose heavy fines, conduct audits, or even shut down any seller, courier, or platform that ignores them.

Other Key Tax Changes in Finance Act 2025:

• A gradual sales tax was added to industries in FATA/PATA (starting at 10% in 2025, going up to 18% by 2029).
• Imported solar panels will now have a 10% tax to help local manufacturers.
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• Certain imported medicines for personal use will still be tax-free.
• Changes in export schemes (e.g., cotton products removed, insurance guarantees now allowed).

These changes are FBR’s biggest push yet to regulate Pakistan’s digital economy. Online sellers and couriers must now follow strict rules, or they could face serious consequences.

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