As Pakistan prepares its fiscal roadmap for 2025–26, the Federal Board of Revenue (FBR) is actively exploring new strategies to regulate and tax the booming online shopping sector. With e-commerce experiencing rapid growth, particularly in major cities among middle- and high-income groups, the government sees a significant untapped revenue source within digital retail. According to officials familiar with the matter, the FBR is working on a proposal to impose General Sales Tax (GST) on goods purchased through online shopping platforms, especially those paid via cash-on-delivery. Under one proposal, a 3% GST would be deducted by the delivery agent on behalf of the FBR during cash transactions, while the remaining 15% GST would be charged by the product’s manufacturer and added to the overall price. Additionally, the FBR is reviewing methods to tax online transactions made using debit and credit cards. While a Federal Excise Duty (FED) already applies to international card-based payments, there is currently no such duty on local e-commerce purchases. The revenue authority believes closing this gap could help broaden the national tax base. A recent study conducted by the FBR highlighted the exponential rise of online shopping across urban Pakistan,…