ISLAMABAD: Newly released figures from the Federal Board of Revenue (FBR) presented at the National Assembly Standing Committee reveal that Pakistanis collectively spent over Rs317 billion on various online applications and digital services from tech giants like Meta, Apple, Netflix, and others during the fiscal year 2024–25. This astonishing figure highlights the rapid expansion of the digital economy within the country.
In response to this booming digital expenditure, the federal government has introduced the “Digital Presence” Proceeds Levy Act, 2025. This new legislation imposes a 5 percent tax on the total transaction value for both foreign vendors, such as Amazon, Facebook, Google, and Temu, and local vendors like Daraz and Pak Wheels, who supply digitally ordered goods and services to consumers in Pakistan. Banks and courier services have been designated as withholding agents to ensure the comprehensive capture of this new tax revenue.
Meta Leads Spending, Apple Tops Transactions
The spending spree covers a diverse array of apps, spanning social media platforms, online shopping websites, and streaming services. Facebook/Meta emerged as the leader in terms of value, with transactions totaling Rs. 12.3 billion.
Surprisingly, Apple/iTunes recorded the highest number of individual transactions, exceeding 5.1 million, amounting to nearly Rs. 6 billion in value. This suggests a wide user base making smaller, frequent purchases through Apple’s ecosystem.
Google, AliExpress, and Netflix Show Strong Performance
Following closely, Google registered 2.3 million transactions with a value of Rs. 5.94 billion. E-commerce giant AliExpress demonstrated strong consumer spending, reaching nearly Rs. 5 billion across over 944,466 transactions. Even newer entrants to the market, such as Temu, saw notable spending of approximately Rs. 1.8 billion, despite a comparatively smaller transaction volume.
Streaming platforms, exemplified by Netflix, clocked 3.37 million transactions worth Rs. 2.79 billion, indicating sustained demand for digital entertainment services despite increasing subscription costs.
Intriguingly, the category labeled “Other” online platforms accounted for a substantial portion of the total, with 28.6 million transactions totaling a staggering Rs. 281.4 billion. This wide base likely encompasses numerous smaller vendors or potentially represents bundled or underreported transactions, underscoring the vast and diverse nature of online spending in Pakistan.
The introduction of the “Digital Presence” Proceeds Levy signifies the government’s intent to formalize and capture revenue from Pakistan’s rapidly expanding digital marketplace.
