The Federal Board of Revenue (FBR) has taken a decisive step to strengthen oversight of Pakistan’s growing e-commerce sector, mandating stricter compliance protocols for couriers, payment intermediaries, and online marketplaces. The move comes as part of broader amendments introduced to the Income Tax Rules, 2002, through SRO 1634 of 2025. These draft regulations, once finalized after stakeholder feedback, aim to enhance tax collection, improve transparency, and bring more consistency to the digital economy.
According to the new draft rules, domestic e-commerce outfits, courier companies, and payment intermediaries tasked with collecting or deducting withholding tax will now be required to submit quarterly returns. The requirement aligns with Sub-Section 2 of Section 165 and Sub-Section 1 of Section 165C of the Income Tax Ordinance, ensuring that entities handling significant volumes of online transactions are fully integrated into the formal reporting framework.
Under these protocols, quarterly statements must be filed electronically using formats prescribed in Part X of the Second Schedule. The deadlines are fixed at four key intervals throughout the year: April 20 for the quarter ending March 31, July 20 for the quarter ending June 30, October 20 for the quarter ending September 30, and January 20 for the quarter ending December 31. By enforcing these timelines, the FBR seeks to maintain a steady flow of data that can support real-time monitoring of tax compliance in the digital commerce landscape.
In addition to quarterly obligations for couriers and intermediaries, the FBR has introduced a parallel compliance requirement for digital marketplaces. Online platforms handling digitally ordered goods and services must now file detailed monthly statements. These filings are expected to cover both transactional data and aggregate figures of registered sellers operating through these platforms. This step is aimed at increasing visibility into the rapidly growing digital marketplace sector, where traditional monitoring mechanisms have often struggled to keep pace.
Moreover, the FBR has clarified that if an online marketplace also provides courier services, it will fall under dual obligations, making it necessary to file statements under Sub-Rule 2 of Rule 44, in line with Part X of the Second Schedule. To streamline compliance, the FBR has designed two specific formats for reporting: Form A1 and Form A2, which must be used for all submissions.
This regulatory tightening highlights the FBR’s broader strategy to ensure that Pakistan’s digital economy does not remain outside the scope of effective tax administration. The rapid growth of e-commerce, accelerated by both technological adoption and consumer demand, has created new challenges for regulators who are tasked with balancing innovation and accountability. With these amendments, the FBR appears determined to formalize processes, reduce tax leakages, and build greater trust in the country’s digital financial ecosystem.
For businesses, these changes will mean adjusting to stricter filing requirements and adopting digital reporting mechanisms more rigorously. For consumers and the broader economy, the reforms are likely to contribute to a more transparent and sustainable digital marketplace in the long run.
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