ISLAMABAD – Prices on popular international shopping platforms like Temu, SHEIN, and AliExpress are expected to drop in Pakistan after the federal government officially removed the 5% tax imposed on foreign tech companies providing digitally ordered goods and services.
The move comes under the Digital Presence Proceeds Tax Act, 2025, with a notification issued by the Federal Board of Revenue (FBR) stating:
“The Digital Presence Proceeds Tax shall not apply to digitally ordered goods and services supplied from outside Pakistan by any person, which are chargeable to tax under the said Act.”
Effective July 1, 2025, this rollback is part of broader economic and diplomatic considerations, including efforts to facilitate trade deals with the United States and improve digital commerce flows.
The government had initially imposed the tax in the 2025–26 federal budget, which led to a noticeable increase in product prices across global e-commerce platforms.
Although this 5% tax has been removed, consumers may still not see prices return to pre-budget levels, due to the 18% sales tax that continues to apply on these platforms.
