Islamabad, June 12, 2025 – In a dramatic turn of events, courier services in Pakistan are now poised to become full-fledged tax collectors, thanks to sweeping changes proposed in the Finance Bill, 2025.
Yes, you read that right—couriers, traditionally known for delivering your favorite online orders, will now also be responsible for collecting government taxes at your doorstep!
This shocking transformation is no speculation. According to a detailed commentary on the Finance Bill, 2025, published by tax experts at PwC A.F. Ferguson & Co., Pakistan’s government is on the verge of embedding tax collection directly into the veins of the booming e-commerce ecosystem. With the introduction of Section 6A into the Income Tax Ordinance, 2001, a new digital tax regime is being proposed, targeting all online sales and deliveries conducted within Pakistan.
Under this new regime, anyone selling goods or services through a locally operated digital platform in Pakistan—be it websites, apps, or online marketplaces—will face a mandatory digital tax. The catch? If a courier collects payment on behalf of the seller through Cash on Delivery (CoD), that courier must now also deduct and deposit the prescribed tax amount.
This tax is applicable regardless of whether it’s a pair of jeans or an air conditioner being delivered. The tax rates vary based on the type of goods and payment method. For instance:
• A courier delivering electronics on CoD must deduct 0.25% of the gross payment.
• For clothing items, the deduction jumps to 2%.
• For all other goods, 1% tax will be deducted before the payment reaches the seller.
The government’s new law essentially turns the delivery guy into a mini-taxman, with far-reaching implications for the retail and tech landscape in Pakistan.
What Counts as a Digital Transaction?
The new law defines Digitally Delivered Services as those provided online with minimal human involvement—think Netflix subscriptions, cloud storage, or digital software tools. E-commerce, meanwhile, refers to any sale made via digital platforms—apps, websites, or online marketplaces.
Additionally, an online marketplace is now broadly defined to include any interface that enables direct digital interactions between multiple buyers and sellers, even if the platform doesn’t own the goods.
Who Are the New Tax Collection Agents?
Two main categories have been designated as tax collectors:
1. Payment intermediaries – These are banks or online gateways that process digital payments for goods or services.
2. Courier services – Yes, that’s right. If a courier collects money from you under CoD terms, they are now legally bound to deduct tax before handing over the amount to the seller.
These agents must file quarterly withholding statements listing seller details, transaction data, and the exact tax amount deducted. Any courier or intermediary failing to comply could face severe penalties—up to 100% of the tax involved!
Mandatory Tax Registration for Sellers
Sellers using platforms or courier services for e-commerce in Pakistan are now mandatorily required to register for income and sales tax. Platforms and courier companies are also legally barred from allowing unregistered vendors to operate through their services.
This sweeping measure is expected to drag thousands of informal businesses into the formal economy. Vendors ignoring the law face fines of Rs. 500,000 for the first default, and Rs. 1 million for each subsequent violation.
Penalties for Non-Compliance
The law introduces strict penal provisions to ensure enforcement:
• Online platforms letting unregistered vendors operate can be fined heavily.
• Sellers failing to register will be penalized.
• And any courier service or payment intermediary failing to deduct or deposit the tax will face a penalty equal to 100% of the tax amount involved.
Pakistan’s Bold E-Commerce Overhaul
This tax move is part of Pakistan’s broader ambition to regulate its rapidly expanding digital economy. With the e-commerce sector growing at breakneck speed, the government sees it as fertile ground for increasing revenue—and plugging tax leakages.
But the backlash is building.
Critics warn the move could stifle digital entrepreneurship. Startups and small vendors may be overwhelmed by the new compliance burden. The courier industry, already navigating logistical and financial challenges, now faces an additional role that could stretch its operational capacity.
Despite the controversy, one thing is certain: Pakistan’s tax net is evolving fast, and no digital transaction is safe from scrutiny. As online shopping continues to surge, your next delivery may come with not just your parcel, but a tax deduction as well—courtesy of your local courier turned taxman.
So, next time your courier rings the doorbell, remember—they’re not just delivering your order, they’re also delivering Pakistan’s newest tax reality.