The federal government has rolled back the newly introduced 5% tax on foreign e-commerce platforms, offering partial relief to online shoppers in Pakistan. Platforms like Temu, SHEIN, and AliExpress (whose prices saw a sharp spike post-budget) are now expected to see minor drops in pricing.

The development comes through a formal notification from the Federal Board of Revenue (FBR), which states that the Digital Presence Proceeds Tax will no longer apply to digitally ordered goods and services provided from outside Pakistan. The move, effective from July 1, 2025, is aimed at smoothing trade negotiations, particularly with the U.S.

While the decision will benefit all foreign platforms falling under the law, the 18% sales tax imposed alongside the 5% levy still remains in place. This means prices may not return to pre-budget levels entirely, but the rollback should offer some cushion to frequent users of these platforms.

The 5% tax was part of the broader fiscal measures under the 2025–26 federal budget. However, following criticism and possible diplomatic implications, the government has decided to ease the burden on digital imports, at least partially.

As cross-border shopping continues to grow in Pakistan, this move may also help stabilize e-commerce activity, which was disrupted due to the sudden cost hike.