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The Federal Board of Revenue (FBR) has exempted home-based businesses and one-time sellers from mandatory registration under the proposed new regulations for digital and e-commerce businesses in Pakistan.
FBR Chairman Rashid Mahmood Langrial shared the clarification during a Senate Standing Committee meeting on Finance and Revenue, held to review the recently presented federal budget for 2025–26.
He stated that women doing small-scale business from home and individuals involved in occasional or one-time business activity would not be required to register with the tax authority.
The clarification came after members raised concerns that the proposed e-commerce tax regulations could unfairly impact home-based sellers and casual entrepreneurs trying to earn supplemental income.
Chairman Langrial said that the government only aims to target vendors who actively collect taxes from consumers but fail to deposit those collections with the FBR.
To address compliance gaps, courier services will now act as tax collection agents, as they are already in possession of vendor receipts during the delivery process.
The committee approved the proposal to impose sales tax on e-commerce goods, while clarifying that local service providers will remain exempt from this new taxation requirement.
Foreign digital vendors offering goods to Pakistani consumers will now be required to register with FBR, ensuring fair treatment between local and international digital businesses.
The meeting also reviewed stricter penalties for tax fraud, including ten years’ imprisonment for evasion exceeding Rs 10 million, a new provision under the proposed Finance Bill 2025–26.
The FBR also addressed concerns over powers granted to tax officers. Arrests will now require formal inquiries and written approval by Commissioners before action is taken against suspects.
Minister of State for Finance Bilal Azhar Kayani said the amendment is intended to curb arbitrary arrests and promote accountability within the taxation process.
The Senate committee will continue to examine the Finance Bill 2025–26, with FBR pledging to present a revised draft of contested provisions for further discussion and approval.
