ISLAMABAD – The federal government has abolished the 5 percent tax imposed on goods or services imported digitally from abroad through various apps such as Temu, AliExpress and others.
The Federal Board of Revenue (FBR) has issued a notification in this regard in line with the instructions of the federal government.
Reports said the government has granted exemption from the 5% digital tax imposed on Google and other American and international technology companies.
The Digital Presence Proceeds Tax will not be applicable to technology companies from July 1, 2025.
It is recalled that the federal government had earlier imposed a 5% tax on services and goods ordered online.
The tax was applied to goods and services of companies that do not have offices in Pakistan. However, a clause in the budget had allowed the federal cabinet to waive this tax.
Meanwhile, Pakistan took a significant step forward in its digital transformation journey today, as leaders from government, finance, and technology came together at the National Incubation Center (NIC) Karachi for a high-profile event focused on the future of digital economy and virtual assets.
The event, jointly organized by REIT Academy Pakistan, IRADAM, and Blockanica Technologies, featured keynote addresses, panel discussions, and stakeholder engagement on blockchain innovation, asset tokenization, and the regulatory roadmap for digital finance in Pakistan.
Delivering the headline address, Mr. Khurram Schehzad, Advisor to the Minister for Finance & Revenue, outlined the government’s vision and decisive steps toward a regulated, innovation-ready digital finance framework.
He credited Finance Minister Senator Muhammad Aurangzeb for spearheading reform by establishing the Pakistan Crypto Council (PCC) and championing the recently enacted PVARA Ordinance 2025, which formalizes the virtual assets regime in Pakistan.
“We’re not just experimenting with crypto — we are building the foundations of a secure, Shariah-aligned, and forward-looking digital economy and virtual assets ecosystem,” Mr. Schehzad said. “This includes clear regulations, robust compliance, and greater financial inclusion.”
