Last month, the government imposed new taxes on local and international brands. These changes increased online shopping costs for Pakistani buyers. Additionally, taxes were introduced under the Digital Presence Proceeds Tax Act, 2025, on goods ordered from abroad. However, the Federal Board of Revenue (FBR) has now revised its stance.
According to an FBR notification, this tax will not apply to foreign digital goods and services supplied to Pakistan. The exemption is effective from July 1, 2025.
Sadapay has officially begun informing its users about refunds from international service providers following the rollback of Pakistan’s Digital Presence Proceeds Tax. This tax, which applied to platforms such as Netflix, Spotify, Temu, Daraz, and Amazon, is no longer being charged, with retrospective effect from July 1, 2025.
In a message to its customers, Sadapay stated:
“The Digital Presence Proceeds Tax is no longer being charged on international platforms. We’ve already refunded the amount you were charged during that period. Straight back to your account.”
This information was confirmed by Sadapay to TechJuice, indicating that the fintech firm has started notifying customers who were previously taxed under the now-withdrawn regime. This proactive move by Sadapay raises a key question: Will other fintech platforms follow suit?
It also remains to be seen whether global brands themselves, like Netflix, Spotify, or Amazon, will directly address users in Pakistan or coordinate further refund efforts via local partners.