Ministers discuss e-commerce tax reforms as sector nears $8bn

KARACHI: Federal ministers for commerce and information technology have proposed revisions to the country’s e-commerce taxation framework, aiming to ease compliance for small and medium-sized enterprises (SMEs) and support the sector’s continued growth.

Minister for Commerce Jam Kamal Khan and IT Minister Shaza Fatima Khawaja led a high-level meeting on Wednesday to address regulatory hurdles in the country’s fast-growing digital marketplace.

As part of the government’s upcoming eCommerce Policy 2.0, the ministers announced the formation of a joint working group to develop targeted recommendations on vendor taxation, compliance protocols, and digital payment mechanisms. The group’s findings will be submitted to the prime minister for final review.

“The revised policy is undergoing internal review and will soon be placed before the cabinet for formal approval,” Khan said.Pakistan’s e-commerce market reached $7.7 billion in 2024 and is projected to grow at a compound annual rate of 17 per cent through 2027, driven by rising digital adoption and increased mobile penetration.

The ministers said they are committed to building a competitive, inclusive and digitally empowered trade ecosystem, adding that challenges faced by the sector will be addressed at the highest policy level.