FBR imposes 18% sales tax on online orders

Pakistan’s Federal Board of Revenue (FBR) has reportedly imposed an 18% sales tax on all online orders, a move that is anticipated to significantly impact the cost of online shopping for consumers across the country.

The announcement, which has begun circulating through social media and online platforms, suggests that this new tax levy will apply to a wide range of goods and services purchased through online channels.

The implications of this decision are far-reaching, particularly for the burgeoning e-commerce sector in Pakistan.

Platforms such as Daraz, visible on the laptop screen in the disseminated image, have become increasingly popular for their convenience and accessibility, offering a diverse array of products to a broad consumer base.

The imposition of an 18% sales tax could potentially dampen this growth by making online purchases considerably more expensive, thereby reducing consumer demand.

Consumers, already grappling with inflation and economic challenges, are likely to feel the pinch of this additional tax burden.

Everyday necessities, electronics, fashion items, and even digital services purchased online could see a substantial price increase, potentially shifting consumer behavior back towards traditional brick-and-mortar shopping or leading to reduced overall spending.