Tax Penalties Revised for Online Platforms, Payment Intermediaries and Couriers
In a significant move aimed at balancing tax enforcement with business facilitation, the federal government has revised tax penalties for online payment intermediaries, e-commerce platforms, and courier companies under the amended Finance Bill 2025–26, following recommendations from the National Assembly and Senate Standing Committees on Finance.
Tax Penalties Revised: Breakdown of Revised Penalty Structure
Under the amended Finance Bill 2025-26, penalties have been reduced for certain non-compliance actions by online marketplaces, payment intermediaries, and courier companies. However, strict punishment still applies for confirmed tax fraud.
Penalties for Non-Filing of Monthly Sales Tax Statements
| Offense | Penalty |
| Failure to file the prescribed monthly statement for two consecutive months | PKR 300,000 (First default) |
| Failure to file in any subsequent month within the same year | PKR 1,000,000 per default |
This applies to:
- Online marketplaces (e.g., e-commerce platforms)
- Payment intermediaries (e.g., mobile wallets, fintech firms)
- Courier companies collecting payments on behalf of sellers
Penalties for Allowing Unregistered Sellers
If any of these platforms allow unregistered persons to use their services for e-commerce activities:
| Offense | Penalty |
| First time allowing an unregistered seller | PKR 300,000 |
| Each subsequent violation within a year | PKR 1,000,000 per violation |
This provision aims to push platforms to verify seller registration before onboarding them.
Tax Fraud: Still a Serious Offense
The Finance Bill keeps strict penalties in place for tax fraud, dividing offenses into two categories:
Category A: Severe Tax Fraud
(Clauses a–f of Section 2(37))
| Penalty | Details |
| Jail | Up to 10 years |
| Fine | Up to PKR 10 million |
| Tax Repayment | Full recovery of tax loss confirmed by Special Judge |
| Additional Penalties | 100% of tax evaded + default surcharge under Section 34 |
Category B: Lesser Tax Fraud
(Clauses g–k of Section 2(37))
| Penalty | Details |
| Jail | Up to 5 years |
| Fine | Up to PKR 5 million |
| Tax Repayment & Penalties | Same as above |
Fraud cases must be confirmed by a special judge based on documented tax loss (under Section 37B).
What This Means for E-Commerce in Pakistan
For the growing e-commerce sector, this signals the end of the “grey zone.” Platforms, couriers, and intermediaries will now be held legally accountable for enabling non-compliant businesses.
Digital platforms will need to enhance their compliance checks, ensure only registered sellers operate via their ecosystems, and meet monthly filing obligations to avoid hefty fines.
More broadly, this aligns with Pakistan’s gradual push toward a digitally governed and tax-regulated economy, though critics argue that more facilitation and capacity-building should accompany stricter regulations.
ALSO READ: Senate Committee Backs E-Commerce Taxation, Mandates Registration of Online Sellers
