ISLAMABAD ( Rizwan Abbasi): The federal government has decided to abolish the 5 percent digital tax imposed on goods and services purchased online from abroad.
In this regard, the Federal Board of Revenue (FBR) has issued a formal notification under which this exemption has been given under the Digital Presence Proceeds Act 2025.
According to the notification, now digital tax will not be applicable on goods and digital services sent to Pakistan from abroad.
The 5 percent tax exemption will be applicable on goods and services that are ordered digitally. This decision has come into effect from July 1, 2025.
According to government sources, this move will not only provide relief to common consumers in online purchases but will also promote the country’s e-commerce sector and digital economy.
Experts say that freelancers and small online businesses that hire services abroad will also directly benefit from this decision. The government has called the move a positive and timely step towards expanding the country’s digital economy.
