Pakistan, Aug. 7 -- The Federal Board of Revenue (FBR) has rolled out a new mechanism to deduct sales tax on online purchases, aiming to tighten the noose on e-commerce transactions and ensure better compliance.

According to a notification issued by the FBR, amendments have been made to the Sales Tax Rules, 2006, by introducing a new chapter that deals with tax deductions on online marketplaces, payment intermediaries, and courier services.

Under the newly introduced system, if a customer places an online order and makes payment either via digital methods or through Cash on Delivery (COD), the payment channel or courier company will now be responsible for deducting the sales tax on the sold goods at the time of delivery. The remaining a...