Govt Enforces New Tax on Online Purchases and Cash on Delivery Transactions

Techlist Staff — Tue, 10 Jun 2025 18:47:31 +0000

In a significant move impacting Pakistan’s growing e-commerce ecosystem, the government has proposed a new taxation mechanism targeting digitally ordered goods and services. The changes come under a new provision to be added via Section 6A, aimed at treating digital commerce as a distinct block of income for taxation purposes.

Until now, there was no dedicated framework to identify and tax e-commerce transactions. The proposed amendment seeks to formalize this segment and bring it into the tax net.

Online Marketplaces and Couriers to Deduct Taxes

As per the new provision, online marketplaces and courier service providers will be designated as “prescribed persons” under Section 153 of the Income Tax Ordinance. These entities will be responsible for deducting taxes on behalf of the government from payments made to vendors who sell goods or services through digital platforms.

The government has outlined specific rates for advance tax deductions on digital transactions and Cash on Delivery (COD) orders.

Tax Rates for Payments via Digital Channels

Sr	Description	Tax Rates
1	Where the amount paid does not exceed Rs. 10,000	1% of the gross amount paid
2	Where the amount paid exceeds Rs. 10,000 but does not exceed Rs. 20,000	2% of the gross amount paid
3	Where the amount paid exceeds Rs. 20,000	0.25% of the gross amount paid

Tax Rates for Cash on Delivery (COD)

Sr	Description	Tax Rates
1	On supply of electronic goods	0.25% of the gross amount paid
2	On supply of clothing articles, apparels, garments etc.	2% of the gross amount paid
3	On supply of goods other than mentioned above	1% of the gross amount paid

Implications for E-Commerce Vendors

These proposed taxes are likely to affect thousands of small and medium-sized vendors who rely on digital platforms and COD services for reaching customers. While the move aims to increase documentation and revenue, stakeholders in the digital economy are concerned about the potential burden on sellers and reduced margins.

Stay tuned to Techlist.pk for further analysis and industry reaction as this development unfolds.

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Etsy Officially Allows Pakistani Sellers to Open Shops and Receive Payments via Payoneer

Techlist Staff — Thu, 30 Jan 2025 15:08:27 +0000

In a major breakthrough for Pakistani entrepreneurs and artisans, Etsy has officially added Pakistan to its list of supported countries for Etsy Payments. This means Pakistani sellers can now legally open shops on Etsy and receive payments via Payoneer, marking a new era of global e-commerce accessibility for the country.

A Game-Changer for Pakistani Sellers

Etsy, a globally recognized online marketplace for handmade, vintage, and craft supplies, had previously restricted sellers from Pakistan due to the lack of direct payment support. However, with this latest update, Pakistanis can now register their businesses on the platform and receive payments directly through Payoneer.

Pakistani sellers will now be able to take advantage of Etsy Payments, which supports multiple payment methods including credit/debit cards, Etsy gift cards, and PayPal (where available). This expansion removes a significant hurdle that had previously forced Pakistani sellers to rely on third-party accounts or international partnerships to access Etsy’s marketplace.

How Pakistani Sellers Can Start Selling on Etsy

To start an Etsy shop from Pakistan, users must:

Create an Etsy Seller Account – Register on Etsy and set up a shop.
Enroll in Etsy Payments – Choose Payoneer as the primary payment method.
Link a Payoneer Account – Sign up for Payoneer (if not already registered) and link it to Etsy for seamless fund transfers.
List Products – Upload product images, set prices, and optimize descriptions.
Start Selling Globally – Once approved, Pakistani sellers can reach a worldwide audience.

A Boon for Pakistan’s Growing E-commerce Sector

The inclusion of Pakistan in Etsy’s payment system is expected to significantly boost the country’s e-commerce sector. Pakistan is home to thousands of talented artisans, calligraphers, textile designers, and handicraft makers who now have a direct route to international markets. The ease of payment through Payoneer eliminates one of the biggest barriers to entry, making it easier for Pakistani sellers to scale their businesses.

Etsy Payments and Supported Countries

Pakistan joins other Etsy-supported countries where payments are facilitated through Payoneer. This move aligns with Etsy’s vision of expanding its seller base globally and providing more opportunities for entrepreneurs in emerging markets.

What This Means for Pakistani Entrepreneurs

No More Workarounds: Previously, sellers had to rely on intermediaries in PayPal-supported countries.
Seamless Payments: Payoneer allows easy withdrawals to Pakistani bank accounts.
Global Reach: Pakistani artisans can now tap into Etsy’s vast international customer base.
Boost to Local Craft Industry: Handmade products from Pakistan, including textiles, jewelry, and artwork, can now reach buyers worldwide.

Conclusion

This update marks a historic milestone for Pakistan’s digital economy and small business owners. Etsy’s decision to enable direct seller registration from Pakistan is a testament to the country’s growing influence in the global handmade and digital goods market.

For Pakistanis looking to launch an Etsy shop, now is the perfect time to explore this opportunity and start selling internationally.

Source: Etsy Payments

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