Federal govt withdraws digital tax on imported goods, services

Islamabad: The federal government has abolished the 5% tax previously imposed on goods or services imported digitally from abroad.

Following the federal government's directive, the Federal Board of Revenue (FBR) has officially issued a notification in this regard.

According to sources, the government has granted exemption from the 5% digital tax to technology companies including Google, as well as other American and international tech firms. The Digital Presence Proceeds Tax will no longer apply to technology companies starting from July 1, 2025.

It is worth noting that the federal government had imposed a 5% tax on services and goods ordered online, specifically targeting companies that do not have offices in Pakistan. However, a clause in the budget allowed the federal cabinet to waive this tax.