FBR introduces cargo tracking system to regulate e-commerce economy 

The Federal Board of Revenue (FBR) has introduced a new cargo tracking system as part of its latest efforts to enhance transparency and boost revenue. This move is part of a broader digital overhaul included in the Budget 2025–26, aimed at expanding the tax net and regulating Pakistan’s booming e-commerce economy.

As part of the reform, the “E-Bilty” (electronic consignment note) system has been formally integrated into the sales tax law, enabling real-time monitoring of goods in transit. Additionally, online buying and selling activities are now under stricter scrutiny, with enhanced sales tax oversight being implemented across digital transactions.

A 2% sales tax has been imposed on e-commerce transactions, with courier companies now being brought under the tax enforcement net. The FBR has started developing a compliance strategy to make courier services responsible for tax collection at source.

On June 10, budget documents revealed a raft of new tax measures designed to raise revenues and widen the tax base. A key highlight is the increase in the tax on interest income from 15% to 20%, applicable to passive income streams such as bank deposits and investment returns, excluding National Savings schemes, which remain exempt.

To modernise collection and regulate digital commerce, e-commerce platforms will now be required to deduct taxes on all digital sales and submit monthly transaction data to the FBR.

In a bid to regulate non-productive lending, the government has also introduced a 25% tax on income derived from loans. However, there is no change in the tax rate on share market profits, providing some relief to investors.

Another key reform is a 5% tax on annual pensions exceeding Rs10 million for individuals below the age of 70, with assurances that low- and middle-income pensioners will remain unaffected.

These sweeping measures signal a clear shift toward digital regulation, financial transparency, and increased tax equity in Pakistan's fiscal policy.

Reporter: Kaleem Akhtar