A significant change has been made in the Finance Bill 2025, passed by the Parliament, under which the 5% tax imposed on goods and services ordered through digital means from abroad has been abolished. This decision will particularly benefit international high-tech companies.
According to the notification issued by the FBR, this tax on foreign digital products will no longer be applicable. Through this move, companies like Google, Temu, and other American and Chinese high-tech firms will directly benefit.
The FBR stated that this tax exemption has been withdrawn following cabinet approval and will be effective from July 1, 2025. It is worth noting that the FBR had estimated revenue of nearly Rs 40 billion from this digital tax.
In addition, the American Chamber of Commerce had also raised concerns about this tax, considering that it has been decided that no tax will be applicable on digitally ordered goods and services from abroad.
