Pakistanis spend over $1b annually on online shopping; govt imposes 5% tax on global digital platforms

Pakistanis have spent over Rs 317 billion on various online apps from tech giants such as Meta, Apple, Netflix, etc, for the fiscal year 2024–25. 

The federal government has introduced the “Digital Presence” Proceeds Levy Act, 2025, which imposes a new tax on foreign vendors like Amazon, Facebook, Google, Temu etc, and local vendors like Daraz and Pak Wheels supplying digitally ordered goods and services to consumers in Pakistan. 

This significant surge in digital transactions has prompted the federal government to introduce a 5% tax on global online platforms such as Facebook, Google, YouTube, Alibaba, Netflix, and others as part of the new fiscal budget.

The spending spree covers a wide array of apps, from social media giants to online shopping websites and streaming services. 

Among the platforms highlighted in the documents:

Facebook received payments totaling over PKR 123 billion from Pakistan, primarily in advertising and marketing services.

Google was paid approximately PKR 5.94 billion, while Apple iTunes and App Store transactions amounted to PKR 5.14 billion.

On e-commerce fronts, AliExpress saw purchases of PKR 4.9 billion, while Alibaba received payments worth PKR 2 billion.

Temu, a rising e-commerce platform, registered payments of PKR 1.82 billion, and Netflix earned PKR 2.79 billion from Pakistani subscribers.

Transactions on Shopify platforms surpassed PKR 1 billion, and spending on other international online businesses exceeded PKR 281 billion, indicating a widespread consumer shift towards global e-commerce.

In response to these findings, the National Assembly’s Standing Committee on Finance has formally approved the Digital Proceeds Act, under which the new tax regime will be implemented.