Karachi, August 21, 2025 – The Federal Board of Revenue (FBR) has released the updated withholding tax card for the supply of goods and services for the tax year 2025-26. The notification was issued under Section 153 of the Income Tax Ordinance, 2001, reflecting amendments introduced through the Finance Act, 2025.
The newly issued withholding tax framework outlines rates applicable to transactions involving goods, services, and contracts, differentiating between taxpayers listed on the Active Taxpayers List (ATL) and those who are not. Higher rates have been imposed on non-ATL taxpayers to encourage compliance and expand Pakistan’s tax base.
The card also addresses the taxation of digitally ordered goods and services through e-commerce platforms, recognizing the growing role of digital trade in the economy. Payments made via banking channels enjoy a lower tax rate compared to cash-on-delivery transactions, a move aimed at promoting formal payment systems.
Withholding Tax Rates for Goods & Services (2025-26)
| Section | Description | ATL Rate | Non-ATL Rate |
| 153(1)(a) Supplies | Sale of rice, cotton seed or edible oils | 1.50% | 3.00% |
| 153(1)(a) Supplies | Companies – Toll manufacturing | 9.00% | 18.00% |
| 153(1)(a) Supplies | Companies – Other than toll manufacturing | 5.00% | 10.00% |
| 153(1)(a) Supplies | Others – Toll manufacturing | 11.00% | 22.00% |
| 153(1)(a) Supplies | Others – Other than toll manufacturing | 5.50% | 11.00% |
| 153(1)(b) Services | Certain services | 6.00% | 12.00% |
| 153(1)(b) Services | IT & IT-enabled services | 4.00% | 8.00% |
| 153(1)(b) Services | Other services (not specified) | 15.00% of gross | 30.00% of gross |
| 153(1)(b) Services | Advertising (electronic & print media) | 1.50% of gross | 3.00% of gross |
| 153(1)(c) Contracts | Sportspersons | 15.00% | 30.00% |
| 153(1)(c) Contracts | Company | 7.50% | 15.00% |
| 153(1)(c) Contracts | Other cases | 8.00% | 16.00% |
| 153(2) | Services to exporters/export houses | 1.00% | 2.00% |
| 153(2A) | E-commerce (digital payment) | 1.00% of gross | 2.00% of gross |
| 153(2A) | E-commerce (cash on delivery) | 2.00% of gross | 4.00% of gross |
The FBR emphasized that these withholding tax rates are critical for ensuring fair revenue collection, improving compliance, and modernizing Pakistan’s tax regime in line with digital commerce trends.