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CAP and PEA Launch Petition Against Tax Hikes Impacting E-commerce and Retail

  • June 16, 2025
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A united front has emerged in Pakistan’s retail and digital commerce sectors as industry associations raise alarm over rising tax burdens and stringent compliance regulations. In a joint move, the Chainstore Association of Pakistan (CAP) and the Pakistan Ecommerce Association (PEA), alongside various key stakeholders, have launched a national petition to push back against what they describe as policy measures that could jeopardise the growth and sustainability of the country’s digital and retail ecosystem.

The petition, hosted on chainstore.pk, is calling for immediate attention from policymakers and aims to galvanise support from businesses, entrepreneurs, and concerned citizens. Organisers argue that the current regulatory environment, especially the recent increases in tax obligations and documentation requirements, threatens to stall progress made in the formalisation of the retail sector and the digital shift seen in recent years.

According to CAP and PEA, the measures under question could disproportionately impact small and medium-sized businesses that are already struggling to maintain operations in a volatile economic climate. By introducing more compliance costs without corresponding digital infrastructure or incentive mechanisms, they say, the policies will push many businesses back into the informal sector, undoing years of progress in digital adoption and transparency.

The retail and e-commerce communities have cited growing frustration with the lack of consultation in tax policy formulation, especially in matters affecting online businesses, point-of-sale integrations, and payment gateways. Stakeholders warn that without immediate corrective actions, many digital retailers may be forced to scale back, shut down, or shift to less formal channels, reducing overall economic efficiency and tax net expansion.

Both CAP and PEA have stressed that their goal is not to resist regulation but to push for fair and inclusive policymaking that supports rather than stifles innovation and formal growth. They believe a constructive dialogue between the government and digital ecosystem players can pave the way for smarter policies that incentivise compliance instead of penalising digital business growth.

Industry representatives are also encouraging all members of the broader business community to sign and circulate the petition to increase pressure on relevant authorities. By doing so, they hope to build momentum for regulatory reform that reflects the realities of modern commerce, particularly in the online domain. The associations emphasize that collaboration is necessary to ensure that Pakistan remains competitive in regional digital markets and continues to attract investment in retail technology and online platforms.

As more businesses and advocacy groups rally around the initiative, the call to action is gaining visibility across social media and professional networks. The outcome of this petition could shape not only future tax policy but also determine the pace of digital transformation in Pakistan’s commerce landscape.

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Related Topics
  • CAP
  • chainstore petition
  • digital ecosystem
  • e-commerce Pakistan
  • ecommerce policy Pakistan
  • online business
  • PEA
  • retail tax protest
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