Pakistan, July 31 -- The Federal Board of Revenue (FBR) has officially withdrawn the digital proceeds tax imposed on goods and services ordered online from abroad, effective July 1, 2025. The rollback also ensures no retrospective application of the tax, easing concerns for shoppers who made purchases before the announcement.

This tax was part of the newly introduced "Digital Presence Proceeds Tax Act 2025," designed to tax foreign e-commerce platforms like AliExpress, Taobao, and Amazon that sell to Pakistani consumers without a physical presence in Pakistan. Under this law, a 5% tax on the purchase amount was to be collected through banks or online payment gateways. Customs authorities were also empowered to hold packages until tax pay...