Islamabad, August 2025 – The Federal Board of Revenue (FBR) has announced stricter compliance requirements for e-commerce operators, couriers, and payment intermediaries, aiming to enhance transparency and strengthen tax oversight in Pakistan’s rapidly growing digital commerce sector. The authority has proposed mandatory quarterly and monthly return filings for entities involved in collecting or deducting withholding taxes, reflecting a proactive effort to streamline regulatory enforcement.
Through draft amendments to the Income Tax Rules, 2002, issued as SRO 1634(I)/2025, the FBR outlined detailed protocols for domestic couriers and payment intermediaries. Under the proposed rules, any courier or intermediary responsible for withholding or collecting tax under Division II or Division III of Part V of Chapter X, or under Chapter XII of the Ordinance, is required to submit quarterly statements electronically. These statements must follow the format prescribed in Part X of the Second Schedule to the rules. Filing deadlines are defined as April 20 for the quarter ending March 31, July 20 for the quarter ending June 30, October 20 for the quarter ending September 30, and January 20 for the quarter ending December 31.
In addition to quarterly filings, the FBR has introduced monthly reporting requirements for online marketplaces facilitating digitally ordered goods and services. Under Sub-Section 2 of Section 165C, digital platforms must furnish statements detailing both transactional and aggregate data of registered sellers. These measures are intended to enhance visibility over the operations of e-commerce platforms and ensure compliance with existing tax obligations.
Furthermore, marketplaces that also provide courier services are required to file additional statements as per Sub-Rule 2 of Rule 44, read with Part X of the Second Schedule. The FBR has designated two specific formats, Form A1 and Form A2, to standardize submissions and simplify monitoring. Officials emphasized that these reforms aim to reduce tax evasion, improve accountability, and support the formalization of Pakistan’s online commerce ecosystem.
The draft amendments are currently open for stakeholder feedback before finalization. Industry experts note that these measures will bring greater regulatory clarity to digital commerce while encouraging compliance and fair competition. By integrating reporting requirements for both marketplaces and couriers, the FBR seeks to close existing gaps in tax collection and create a more transparent and accountable e-commerce environment.
The enhanced oversight is part of Pakistan’s broader strategy to formalize digital transactions, strengthen financial inclusion, and modernize the regulatory framework for online business operations. With e-commerce expanding rapidly across urban and rural regions, these measures are expected to streamline tax administration while supporting the sustainable growth of the sector.
