Online shopping in Pakistan is growing rapidly—and so is tax oversight. From tax year 2026, the Federal Board of Revenue (FBR) has significantly expanded its monitoring powers to track payments made through e-commerce platforms, payment intermediaries, and courier services. This change aims to improve documentation of the digital economy and widen the tax net.
What Has Changed in Tax Year 2026?
Under the Income Tax Ordinance, 2001, a new provision—Section 165C—now allows the FBR to collect detailed transaction-level data related to digitally ordered goods and services. While buyers are not directly taxed under this section, their transactions help FBR identify sellers with taxable income who may not be filing returns.
How Does FBR Get Online Shopping Data?
Section 165C places reporting obligations on three key players in e-commerce:
1. Payment Intermediaries & Courier Services
Entities responsible for deducting tax under Section 153(2A) must file quarterly withholding statements. These statements include:
• Seller’s name, CNIC/NTN, and address
• Transaction date and invoice number
• Total transaction value
• Tax deducted at source
2. Online Marketplaces
Every online marketplace operating in Pakistan must submit monthly statements to FBR containing:
• Seller’s name, address, and tax registration details
• Monthly sales volume (transactional and aggregated)
• Amount deposited into the seller’s bank account
This allows FBR to match sales data with tax returns and bank records.
Why Is FBR Monitoring Online Payments?
The objective is clear:
• 📌 Document the digital economy
• 📌 Identify non-filers and under-reporting sellers
• 📌 Ensure proper withholding and tax compliance
What Should Online Sellers and Buyers Know?
• Sellers must ensure their tax registration and returns are up to date.
• Buyers should know their transactions contribute to national tax data, even if no direct tax is deducted from them.
• Platforms and couriers face penalties for non-compliance or inaccurate reporting.
Final Takeaway
With Section 165C in force, online shopping is no longer invisible to tax authorities. Whether you sell through e-commerce platforms or pay via digital channels, FBR now has a clearer picture of Pakistan’s online economy—making compliance more important than ever.
Disclaimer: This article is for general informational and educational purposes only. It does not constitute legal, tax, or professional advice. Tax laws and their interpretation may change, and their application can vary based on individual circumstances. Readers are advised to consult a qualified tax advisor or refer to official FBR notifications and the Income Tax Ordinance, 2001 before making any financial or compliance decisions.