ISLAMABAD – In a shocking development, several major courier companies have issued a notification to all customers, including registered E-commerce companies and online traders, that due to the government of Pakistan’s having imposed additional taxes, from July 2025 onward.
From July onwards, courier companies will start deducting 2 percent withholding tax and 2 percent sales tax on every delivery item, regardless of Cash on Delivery (COD) and deposit. The additional charges added are according to the instructions issued by the Government under the Finance Bill.
The Courier operators urged their sellers to get themselves registered with the relevant tax authority to avail delivery services under the new regulatory requirements. Under these new regulations, all sellers are required to register for sales and income tax on goods ordered digitally. The courier companies will not be authorized to process the delivery without the required registration.
Furthermore, the E-commerce trend in Pakistan has helped the overall growth of over 2,000 courier companies operate across the country as their businesses were improved, the courier operators who witnessed such improvements include TCS, Leopards, Pakistan Post, SpeedeX, FedEx, DHL, M&P, BlueEx, Call Courier, Trax, DCS, APX, SWYFT.
In the upcoming budget, the FBR has assigned courier services as collection agents because they possess the seller’s invoice. These companies will deduct taxes from E-commerce sellers and remit them to the tax authorities. Shoaib Bhatti, President of the Pakistan E-commerce Association—Karachi Chapter, stated that the new taxes on E-commerce companies, online businesses, and their logistics partners will severely hinder the growth of this emerging sector, negatively impacting all stakeholders involved.
He predicts that major e-commerce companies and marketplaces may be able to absorb some of the incremental costs within their operations. In contrast, small and medium-sized sellers are likely to pass on the effects of new taxation to their customers in order to remain competitive in the market.
In plight of increasing taxes on petroleum products and additional utility charges, mainly on electricity, gas, and internet, have squeezed the profit margins of online businesses in Pakistan, he further stated. Shoaib Bhatti pointed out that the charges might be passed on to customers on domestic and intracity orders through online marketplaces.
According to reports coming from the SBP, as many as 8,000 E-commerce merchants have now registered themselves with the banking system. FBR officials further clarified that one-time sellers and women selling goods will be excluded from the required registration process under the new e-commerce tax rules.
