The Federal Board of Revenue (FBR) has said the digital proceeds tax on digitally ordered goods and services supplied from outside Pakistan will no longer apply with retrospective effect from July 1.

Last month, the government introduced new taxes on local and foreign e-commerce marketplaces, which made online shopping costlier for Pakistani customers. The government has also introduced new taxes on goods purchased online from outside Pakistan through the Digital Presence Proceeds Tax Act, 2025.

A notification issued by the FBR on Wednesday, and seen by Dawn.com, said: “The Digital Presence Proceed Tax shall not apply to digitally ordered goods and services supplied from outside Pakistan, by any person, which are chargeable to tax under the said act.”

In a post on X, Information Technology Minister Shaza Fatima Khawaja said: “We have removed the tax imposed on international........

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