Starting July 2025, courier companies across Pakistan will begin deducting newly imposed taxes from e-commerce sellers, as mandated under the Finance Bill 2025–26. This move directly affects online businesses using Cash on Delivery (COD) services.
According to official notifications sent to sellers, couriers will now collect 2% withholding tax and 2% sales tax on each delivery and submit these amounts to the Federal Board of Revenue (FBR) on behalf of the sellers.
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The government has designated courier operators as collection agents since they manage delivery invoices. Major logistics firms, including TCS, Leopards, Pakistan Post, BlueEx, Call Courier, and DHL, are now requiring all sellers to be registered with the FBR for sales and income tax.
Shoaib Bhatti, President of the Pakistan E-commerce Association (Karachi Chapter), warned that the decision could slow growth in the e-commerce sector. While larger platforms might absorb the extra cost, small and medium businesses may pass on the burden to customers.
Courier firms have advised sellers to register immediately, as unregistered businesses will be denied delivery services. However, one-time sellers and home-based women entrepreneurs will be exempt from mandatory registration.
With over 8,000 e-commerce merchants already linked to Pakistan’s banking system, this tax enforcement marks a significant shift in how online trade will operate moving forward.
