The Pakistan eCommerce Association (PEA) has urged the government to review its latest taxation policies, arguing that the fiscal measures introduced in the federal budget for 2025–26 are weighing heavily on local e-commerce companies and disproportionately affecting women-led enterprises. According to PEA, the introduction of an 18% General Sales Tax (GST) alongside additional levies ranging between 0.25% and 2% on cash-on-delivery and digital payment transactions is creating significant barriers for women entrepreneurs and small businesses already struggling to remain competitive in a crowded digital marketplace.
Sehrish Ali, General Secretary of PEA, said these tax measures are curbing the ability of local players to scale while offering an undue advantage to foreign platforms that continue to operate in Pakistan without facing comparable fiscal obligations. She pointed out that women entrepreneurs, who often face reduced access to financing, resources, and networks, are among the most vulnerable groups impacted by these fiscal burdens. For many, she added, the added costs risk pushing promising ventures into closure, eroding the gains made in encouraging female participation in the digital economy.
The association highlighted that domestic e-commerce companies already contribute through existing sales and income taxes, but the new taxation regime adds to an already challenging environment. PEA has established a dedicated committee to address these concerns, focusing on developing policy proposals that prioritize the sustainability of women-led startups. Recently, Ali also led a public demonstration aimed at drawing attention to the issue, where she emphasized that meaningful tax reforms and targeted relief are essential to ensuring that women-led enterprises remain viable contributors to Pakistan’s economic growth.
According to Ali, extending financial and regulatory support to women entrepreneurs is not only a matter of inclusivity but also an economic necessity. She stressed that empowering women in e-commerce is integral to tapping into the untapped potential of half of the country’s population. PEA has consistently voiced its concern at press conferences, policy dialogues, and media forums, underscoring that without immediate reforms, Pakistan risks diminishing its digital competitiveness in the global marketplace. Thousands of women-led businesses could face shutdowns if urgent measures are not adopted, raising concerns about the broader impact on innovation, job creation, and economic resilience.
Follow the SPIN IDG WhatsApp Channel for updates across the Smart Pakistan Insights Network covering all of Pakistan’s technology ecosystem.
