Budget 2025-26; From Daraz to PakWheels: Online Buying, Selling to be Taxed at 18pc

The Pakistani government is preparing to impose a 15% to 18% sales tax on major online platforms in the upcoming Budget 2025-26.

This move is part of a larger plan to increase tax revenue and meet conditions set by the International Monetary Fund (IMF).

FBR’s New Target: Online Marketplaces

Sources within the Federal Board of Revenue (FBR) confirmed that the proposed tax will affect top online platforms like Daraz, OLX, Zameen, and PakWheels. These platforms have grown fast in recent years and are now seen as a new way to increase the country’s tax collection.

The government is aiming to collect a total of Rs. 14.3 trillion in taxes for the next fiscal year. The new digital sales tax is expected to play a key role in achieving this target.

What the Tax Means for Users

If the new tax is approved, it will apply to both buyers and sellers using these platforms. This means prices for goods and services sold online may go up. It could also change how people buy and sell online.

Experts believe that this move may slow down growth in the e-commerce sector, but it will help the government raise much-needed funds.

IMF’s Role in This Decision

The IMF has been asking Pakistan to bring more sectors into the tax system. Adding the digital economy to the tax net is one of the steps towards structural reforms. It is also seen as a way to reduce the country’s reliance on loans and manage the economic crisis better.

The proposal is currently under review and will likely be included in the Finance Bill 2025-26, which will be announced later this month.