Digital proceeds tax law will not apply

ISLAMABAD: The Federal Board of Revenue (FBR) has suspended digital proceeds tax on digitally ordered goods and services supplied from outside Pakistan from July 1, 2025, according to SRO 1366(I)/2025 issued by the FBR on Wednesday.

The Federal Board of Revenue (FBR) has announced that the Digital Proceeds Tax Act 2025 would not apply to digitally ordered goods and services supplied from outside Pakistan by any person from July 1, 2025.

According to a notification issued by the FBR on Wednesday, in exercise of the powers conferred by section 15 of the Digital Presence Proceeds Tax Act 2025, the federal government is pleased to direct that the Digital Presence Proceed Tax shall not apply to digitally ordered goods and services supplied from outside Pakistan by any person, which are chargeable to tax under the said Act.

This notification shall come into force on and from July 1, 2025.—SOHAIL SARFRAZ