FBR bans unregistered sellers from online platforms

The Federal Board of Revenue (FBR) has launched a sweeping crackdown on Pakistan’s booming e-commerce sector, making tax registration mandatory for all online sellers and introducing strict compliance measures, 24NewsHD TV reported on Tuesday. 

Under the new reforms, which took effect this week, unregistered e-commerce sellers are now officially banned.

Banks, courier companies, and digital marketplaces have been directed to immediately block services to any seller who has not registered with the FBR.

According to officials, this unprecedented enforcement aims to bring thousands of previously undocumented businesses into the formal economy.

“If you're selling online in Pakistan and not registered with the FBR, your days are numbered,” a senior FBR official warned.

The crackdown is backed by updated legal provisions under Sections 6A and 153(2A) of the Income Tax Ordinance.

All digital payments made through banks, fintech firms, and payment gateways are now subject to a 1% tax, while Cash-on-Delivery (COD) orders will carry a 2% tax, automatically deducted by courier companies before the seller is paid.

Under new directives, a one percent tax on all digital payments made through banks, fintechs, and gateways.

Two percent tax on all cash-on-delivery (COD) orders, deducted by couriers before you get paid.

This aggressive enforcement comes under Sections 6A and 153(2A) of the Income Tax Ordinance, updated as part of FBR’s mission to rope in the exploding digital marketplace.

Under the new law, it’s now illegal for any online marketplace or courier service to work with unregistered sellers.

Non-compliance will lead to penalties, audits, and shutdowns. Whether you’re an aggregator, a mobile app, or an independent e-store, courier companies are now the tax watchdogs.

They must deduct tax, report every sale, and file monthly returns or face the consequences.

The sales tax regime has also been tightened. Under Section 3(7A), tax collected on online sales will be treated as the final liability for small sellers with no input tax credits allowed.

Even foreign businesses selling to Pakistani customers are no longer safe. Amendments to Sections 14(1A) and 14(1B) now require every e-commerce entity, domestic or international, to register under Pakistan’s tax system.

Online platforms, payment processors, and courier services must now submit detailed monthly tax statements to the FBR, listing every transaction, payment, and seller.

FBR’s campaign is being hailed as the most aggressive step ever taken to bring the digital market under the tax net. Experts say it will either clean up the industry or cause chaos for small sellers unprepared for the new system.