Big Relief for Online Shoppers in Pakistan: Prices on Temu, SHEIN & AliExpress Expected to Drop After Tax Rollback
Govt Removes Tax Imposed on Platforms Like Temu, SHEIN, AliExpress
If you’ve been shocked by rising prices on Temu, SHEIN, and AliExpress, there’s finally some good news. The Pakistani government has reversed the 5% tax it recently imposed on foreign online marketplaces. This change is expected to lower prices on popular e-commerce platforms and bring much-needed relief to consumers across the country.
💡 What Caused the Price Hike?
Earlier this year, as part of the 2025–26 federal budget, a 5% Digital Presence Proceeds Tax was introduced. This tax, combined with an already existing 18% sales tax, led to a sharp increase in the cost of digitally ordered goods from international platforms — hitting the wallets of everyday shoppers hard.
📢 Government Issues Notification
In an official notice, the Federal Board of Revenue (FBR) stated:
“In exercise of the powers conferred by section 15 of the Digital Presence Proceeds Tax Act, 2025, the federal government is pleased to direct that the Digital Presence Proceeds Tax shall not apply to digitally ordered goods and services supplied from outside Pakistan.”
This decision reflects Pakistan’s broader efforts to improve global trade relationships — particularly with the United States — and will be applicable to all foreign digital service providers, not just a select few.
🗓️ Effective Date: July 1, 2025
The tax relief is effective starting July 1, 2025, which aligns with the beginning of the new fiscal year and the official implementation of the Digital Presence Proceeds Tax Act, 2025.
Govt Removes Tax
🛍️ What Does This Mean for Shoppers?
With the 5% tax no longer in effect, prices on platforms like Temu, SHEIN, and AliExpress are expected to come down soon. However, shoppers should keep in mind that the 18% sales tax remains, which means prices may not return to pre-budget levels — but they’ll definitely be more affordable than they were post-budget.
🌐 Boost for Cross-Border E-Commerce
This move not only eases the burden on online shoppers but also encourages a more open and competitive e-commerce environment in Pakistan. It’s a win for both consumers and international sellers.
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