AliExpress Imposes High Checkout Taxes on Pakistani Orders Even After Government Withdraws 5% Digital Levy

Pakistani online shoppers are facing an unexpected surge in checkout costs on AliExpress, as the Chinese e-commerce giant has begun adding substantial taxes on cross-border purchases — even after the government rolled back the recently introduced 5% digital presence tax.

Over the past week, multiple Pakistani buyers have reported unusually high tax additions on AliExpress orders, with some cases showing total taxes exceeding 70 to 80 percent of the product’s original value. The platform now lists separate “Tax” components at checkout, providing a breakdown of the additional charges being applied to Pakistani customers.

For instance, a product priced at $36.96 on AliExpress recently showed a tax addition of $25.87, taking the total order cost to $62.83 — a 70% increase from the base price. The abrupt rise has sparked confusion and frustration among local consumers, especially after the federal government’s recent rollback of the digital levy on foreign e-commerce platforms.

Earlier this year, authorities had introduced a policy requiring international e-commerce platforms like AliExpress and Temu to collect taxes at the source for all imports into Pakistan. The measure was designed to regulate unreported cross-border trade, ensure compliance, and strengthen domestic tax revenue collection. However, the 5% digital presence tax — applied to goods and services supplied from outside Pakistan — was later withdrawn by the government, effective retroactively from July 1, 2025.

Despite this rollback, AliExpress appears to have implemented a separate tax structure at checkout. The platform’s updated billing system shows tax charges for certain products and order categories, though the company has yet to issue an official explanation regarding the nature or basis of these taxes.

Industry analysts believe the new tax additions could stem from other import-related duties or compliance with Pakistan’s customs regulations rather than the now-defunct digital levy. They note that the move aligns with the government’s broader objective to formalize e-commerce imports and ensure taxes are collected transparently before goods enter the country.

Still, the unexpected rise in total checkout costs is discouraging many Pakistani shoppers from placing small or low-cost orders on international platforms. Many users have expressed dissatisfaction on social media, claiming that these extra taxes make AliExpress purchases unaffordable and could push buyers toward local marketplaces instead.

In contrast, competing global platform Temu has not yet introduced similar visible tax components for Pakistani customers, though experts suggest that comparable measures could follow as Pakistan tightens oversight on digital imports.

While the government’s decision to roll back the 5% digital presence tax was intended to ease the burden on foreign e-commerce providers and consumers, AliExpress’s recent pricing adjustment has reignited debate around how online imports should be taxed. Until an official statement clarifies the policy or the reason behind these checkout additions, Pakistani online buyers are likely to remain cautious — and vocal — about the rising cost of shopping on international platforms.

Follow the SPIN IDG WhatsApp Channel for updates across the Smart Pakistan Insights Network covering all of Pakistan’s technology ecosystem.

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