The Pakistan eCommerce Association (PEA) is urging the government to lighten the tax load on the local e-commerce sector and digital payments. They’re calling for a fair playing field for homegrown online sellers to compete with foreign marketplaces.
In a recent statement, PEA pointed out that the existing tax framework unfairly burdens Pakistani e-commerce platforms and sellers, making it tough for them to go head-to-head with global giants that often enjoy more favorable tax conditions or exemptions. This, they argue, hampers the growth of local businesses and stifles innovation in the digital economy.
The association highlighted that e-commerce is one of the fastest-growing sectors in Pakistan, with countless entrepreneurs, small businesses, and startups depending on online platforms to connect with customers across the country. However, the high taxes on digital payments and transactions are discouraging consumers from using formal online channels, pushing many towards informal or cash-based transactions.
PEA’s representatives emphasized that lowering taxes on digital transactions and e-commerce businesses would promote greater use of online payment methods, boost transparency in the economy, and ultimately improve revenue collection over time. They also noted that global trends indicate that reducing digital transaction costs can enhance local business competitiveness, attract investment, and expand exports through online trade.
The association is calling on the government to consider policy reforms that would bring Pakistan’s tax policies in line with international best practices. This includes providing incentives for local e-commerce platforms, ensuring fair competition with foreign marketplaces, and investing in digital infrastructure to support long-term growth in the sector.
PEA reiterated that creating a fair and competitive environment is crucial for nurturing entrepreneurship, generating jobs, and integrating Pakistan’s businesses into the global digital economy. Without these necessary measures, the future of local e-commerce could be at risk.
