ISLAMABAD: The Federal Board of Revenue (FBR) has launched a new digital system for Sales Tax Withholding (STWH) on online goods. This step aims to improve tax compliance in Pakistan’s growing e-commerce sector.
Under the system, payment intermediaries, courier companies, and online marketplaces act as withholding agents. They are responsible for deducting sales tax at source and depositing it through the FBR’s IRIS portal. The system is designed to make tax collection more transparent, automated, and efficient, reducing revenue leakages in online trade. Tax consultation service
According to the FBR, withholding agents can now make e-payments, generate Payment Slip IDs (PSIDs), and get Computerized Payment Receipts (CPRs) online. The system also supports bulk uploading of supplier data via Excel files, making it easier for agents handling many transactions.
The IRIS portal allows monthly submission of Sales Tax Withholding Statements. While intermediaries and courier services report only the amounts they collect, online marketplaces submit consolidated statements covering all transactions through intermediaries and couriers.
The system also includes a sales tax credit claim feature. Suppliers can claim tax credits on withheld amounts in their returns, but claims cannot exceed 2% of the gross value of goods plus applicable sales tax. The system automatically flags any excess claims. Tax consultation service
FBR officials said the new digital framework will help formalize online commerce, ensure timely tax payments, and support Pakistan’s drive toward a transparent and documented economy.
