The Federal Board of Revenue (FBR) has proposed two major tax measures aimed at generating Rs65 billion in additional revenue for the fiscal year 2025-26, focusing on domestic e-commerce and international platforms flooding Pakistan with their goods, according to a news report.
As part of the proposal, the FBR has suggested raising the advance tax on offshore digital services from 10% to 15%, particularly targeting global giants like Google and YouTube. The move aims to not only raise revenue but also incentivize these companies to establish offices in Pakistan.
To further enhance revenue, the FBR has proposed a Digital Presence Proceeds Tax, which is expected to generate Rs39 billion by taxing international e-commerce platforms operating in Pakistan.
Additionally, the domestic e-commerce sector will be taxed through both income tax and sales tax, with an estimated revenue of Rs26 billion.
Overall, the FBR’s additional taxation measures are expected to generate Rs312 billion in revenue, with other significant proposals including an increase in advance tax on service rendering, expected to raise Rs70 billion.
Other measures include the withdrawal of exemptions for FATA/PATA imports (Rs30 billion), increased tax on profit from debt (Rs56 billion), and a proposed tax on pension exemptions (Rs2 billion).
In a bid to rationalize tax policies, the FBR also aims to collect an additional Rs19 billion through the rationalization of the second schedule and an increase in taxes on non-resident payments, projected to bring in Rs10 billion.
These measures are part of the government’s broader effort to bolster tax revenues and improve fiscal stability in the coming year.
