Islamabad, June 4, 2025 – A new framework has been put forward to bring digital platforms in Pakistan under the tax net. This proposal, presented by the Institute of Chartered Accountants of Pakistan (ICAP), is part of the country’s upcoming 2025–26 budget suggestions. Digital businesses in Pakistan have grown rapidly, especially in the areas of e-commerce and online services. However, many of these digital activities—whether operated from within Pakistan or abroad—have remained largely untaxed. The proposed framework aims to address this gap and ensure fair taxation of digital services. According to ICAP, the digital economy in Pakistan is expanding fast, but there are challenges in identifying where these businesses are based and which government authority has the right to tax them. Since services are often delivered through platforms located outside Pakistan or in various provinces, there is confusion over jurisdiction and revenue distribution. To solve this, the framework recommends that all provincial revenue authorities work together to create a unified system. The key proposals include: • Tracking Services: Developing a proper mechanism to detect and tax services offered by digital platforms. This would involve monitoring digital platforms based in Pakistan and using banks and…