By Uzma Sahar 
In the upcoming Finance Bill 2025-26, the Federal Board of Revenue (FBR) is expected to revise its tax framework with significant changes aimed at boosting tax compliance, particularly within the digital and informal sectors.
One of the key proposals is to raise the daily tax-free ATM cash withdrawal limit for non-filers from Rs. 50,000 to Rs. 75,000. Withdrawals exceeding this threshold would now be subject to a 0.8% withholding tax, up from the current 0.6%. The proposed adjustment was presented during a National Assembly Standing Committee on Finance briefing.
E-Commerce Sector Under New Scrutiny
To improve documentation in the rapidly expanding digital market, the government also plans to impose fresh taxes on e-commerce businesses:
- 2% tax on online clothing sales
- 0.5% tax on electronics sold via digital platforms
- 1% tax on all other online retail sectors
Registered businesses will be required to maintain customer billing details, ensuring better transparency and traceability in digital transactions.
Global Tech Giants Affected
Another notable proposal includes an increase in advance tax on digital services from 10% to 15%, targeting foreign platforms such as Google, YouTube, and Facebook. However, to incentivize localization, the tax may be reduced to 5% for companies establishing physical offices in Pakistan.
Banks and courier services will play an integral role as designated tax agents under the new guidelines. Furthermore, digital sellers will be barred from passing tax burdens onto customers through additional charges.
These tax revisions align with the government’s broader objective to expand the national tax base, foster accountability in financial dealings, and regulate digital revenue streams more effectively.