18% GST Imposed on Foreign E-Commerce Transactions

Pakistan’s FBR is proposing to apply 18% GST on cross-border e-commerce goods sales in the 2025–26 budget to close tax gaps and ensure fair competition with local sellers.
While digital service providers are already taxed, there is currently no GST mechanism for foreign sellers of physical goods without local presence, prompting new policy considerations targeting platforms like Amazon and AliExpress.
A 1% e-commerce withholding tax already applies, but broader reforms aim to create an equitable tax regime for international e-commerce, with final decisions expected in the upcoming federal budget.