Karachi, March 26, 2026 – The Institute of Cost and Management Accountants of Pakistan has projected that Pakistan could generate around Rs15 billion annually by imposing a tax on digital platforms in the upcoming budget 2026–27.
The recommendation comes as Pakistan’s digital economy continues to expand rapidly, driven by increasing e-commerce activity, online transactions, streaming services, gaming platforms, and digital media consumption. Despite this growth, much of the revenue generated by global and local digital platforms remains outside the existing tax net.
Proposed Digital Services Tax
ICMAP has suggested the introduction of a 1% Digital Services Tax on revenues earned within Pakistan by streaming services, mobile applications, gaming platforms, and digital media companies. The move is aimed at formalizing the digital sector, improving tax compliance, and ensuring that digital businesses contribute their fair share to national revenue.
Policy Rationale
Experts believe that taxing digital platforms would help Pakistan:
• Capture untapped revenue from a fast-growing sector
• Encourage formalization of digital business activity
• Align with international practices on digital taxation
Expected Revenue Impact
According to estimates, a 1% levy on digital services could generate between PKR 10 billion and PKR 15 billion annually, depending on the growth of the sector. This additional revenue could help strengthen fiscal resources and support public services without placing extra burden on traditional taxpayers.
Growing Digital Economy
Pakistan’s digital landscape has seen significant expansion in recent years, with increased internet penetration, mobile usage, and online business activity. However, policymakers continue to explore ways to integrate digital enterprises into the tax framework to ensure equitable contribution to the economy.
ICMAP emphasized that introducing a digital services tax in the federal budget 2026–27 would be a step toward modernizing Pakistan’s taxation system and capturing value from the evolving digital economy.