KARACHI, June 9, 2025 — The Institute of Cost and Management Accountants of Pakistan (ICMAP) has made a strong case for sweeping tax reforms in its budget proposals for 2025–26, calling on the government to bring offshore sellers firmly under the General Sales Tax (GST) regime.
In a detailed set of recommendations submitted to national tax authorities, ICMAP urged the Federal Board of Revenue (FBR) to aggressively pursue policy changes targeting offshore digital and e-commerce vendors who currently evade the GST net—particularly through the trade of Low-Value Imported Goods (LVIGs).
ICMAP highlighted that these offshore sellers exploit loopholes in the existing taxation system by supplying LVIGs directly to Pakistani consumers without paying GST, leading to massive revenue losses and creating an unfair advantage over local businesses. The institute proposes a clear and enforceable policy: make it mandatory for all offshore sellers to register for GST if their annual sales to Pakistani consumers surpass a threshold—suggested at PKR 9 million.
“Pakistan cannot afford to let billions slip through the cracks of an outdated tax system,” an ICMAP official stated. “Capturing offshore e-commerce under the GST regime is not only possible—it is necessary.”
Globally, countries have adapted to the rapid growth of cross-border e-commerce by bringing offshore vendors into their indirect tax nets. ICMAP argued that Pakistan must do the same, especially as digital platforms continue to dominate the retail space.
The institute estimates that this move could generate a staggering PKR 20–30 billion in additional annual revenue, a much-needed injection into the national exchequer.
Moreover, enforcing GST on offshore sellers would create a level playing field, allowing domestic retailers and manufacturers to compete fairly. This would stimulate local industry, drive growth, and encourage formal business operations.
In its recommendations, ICMAP called for regulatory coordination, digital infrastructure upgrades, and strict enforcement mechanisms to ensure offshore compliance.
By heeding ICMAP’s proposals, the government can not only boost revenue but also assert sovereign tax control over the expanding digital economy—ensuring GST justice for all market participants, both domestic and offshore.