Pakistan, July 15 -- The Asian Development Bank (ADB) has recommended that Pakistan implement a uniform 5% general sales tax (GST) on all digital transactions. The goal is to promote digital payments, support e-commerce growth, and reduce the inefficiencies linked to a cash-heavy economy. This flat tax rate could also help attract investment in the country's digital sector.

In its latest report on Pakistan's digital ecosystem, the ADB warned that high and inconsistent taxes on digital services pose a serious threat to the sector's growth and investment potential. Currently, internet services face a steep 19.5% provincial sales tax, which the ADB says discourages expansion and increases the digital divide - especially among women and marg...