Following the reversal of five per cent Digital Presence Proceed Tax on overseas vendors with retrospective effect from July 1, prices of goods that were hiked on popular international digital retail platforms like Temu, Shein and AliExpress are now expected to decline. The tax was initially introduced in the federal budget announced in June.

Stakeholders in virtual markets and e-commerce had anticipated a gradual stabilisation of prices on international online retail platforms even before the recent announcement by tax authorities. However, none expect a full return to pre-budget levels.

While they foresee some price moderation, they remain cautious about the pace of recovery in this sphere, noting that digital retailers, whose customer base was significantly eroded due to price escalation, are unlikely to regain their full clientele in the near term.

Meanwhile, the notification (SRO No 1366(l)2025), available on the Federal Board of Revenue (FBR) website, does not indicate any revision to the duty-free limit for online purchases. As per the federal budget, this limit was reduced from Rs5,000 to Rs500. Consequently, the revised tariff regime applies to all goods and services delivered from abroad valued above Rs500. Prior to the budget, purchases under Rs5,000 were exempt from duties, an incentive that had attracted........

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