How much tax will you pay for online shopping July 2025?

The federal government has suggested a new 18% sales tax on online shopping in the budget for the year 2025-26. Finance Minister Muhammad Aurangzeb announced this proposal during his budget speech in the National Assembly.

He said that online businesses are growing very fast, which is creating problems for traditional businesses that already follow tax rules.

To keep things fair and make sure everyone pays their taxes, the government wants courier and delivery companies to collect 18% sales tax on goods they deliver for online stores. This tax will be sent to the Federal Board of Revenue (FBR).

If this proposal is approved, online shoppers will start paying this 18% tax from July 2025.

The finance minister also said that people who run businesses through e-commerce will have to share their monthly sales and tax data with the government.

Apart from online shopping, the government has also suggested increasing the tax on interest income. Currently, it’s 15%, but it may increase to 20%. This will only apply to money earned from interest, not from national savings schemes.

Also, a 25% tax is planned for income earned through debt-based investments. However, the tax on income from shares (dividends) will stay the same.

In short, the budget aims to bring more digital businesses into the tax system and raise income through new tax rates.

Read More: Finance Minister Muhammad Aurangzeb addresses post-budget presser