FBR Exempts Home-Based Sellers: The Federal Board of Revenue (FBR) has officially clarified that one-time sellers and women running small-scale businesses from home do not need to register for online business operations.
FBR Chairman Rashid Mahmood Langrial stated at a meeting of Senate Standing Committee on Finance and Revenue. The committee was considering the proposed federal budget that contains new taxation policies targeting digital businesses.
Sales Tax on E-Commerce and Revised Arrest Powers
Despite broader tax reforms, the FBR exempts sellers such as housewives and first-time internet dealers from required registration. The committee passed a proposal to levy sales tax on e-commerce products. The FBR chairman observed that online sellers charge tax to the buyers but most of them fail to remit it to the FBR. To bridge this gap, the courier companies will now become collection agents as they already possess the invoice of the seller.
However, the sales tax will not apply to services delivered within Pakistan. The government has also proposed that all digital vendors—including international e-commerce platforms—register if they sell goods to Pakistani customers.
Despite these changes, FBR clarified that housewives and individuals making one-time online sales will not face mandatory registration.
The session also went over additional enforcement provisions in the Finance Bill 2025-26. The measure seeks tougher penalties for tax evasion. For frauds over Rs10 million, offenders may face up to ten years in prison and fines.
Section 37A of the Sales Tax Act, 1990 gave tax officers wide powers to arrest suspected tax evaders. The new amendment demands a preliminary investigation and the authorization of the commissioner before arresting. Minister of State for Finance Bilal Azhar remarked that this amendment will help to ensure fairness and reduce arbitrary arrests.
Some committee members expressed worry about the potential misuse of these abilities. In response, the chairman of FBR promised to present a revised draft for further review. The committee is still considering the Finance Bill 2025-26.
