Why Temu and AliExpress Are Now More Expensive in Pakistan
Online shoppers across Pakistan have recently noticed a sharp spike in prices on global e-commerce platforms like Temu and AliExpress — and it’s not just your imagination. Following the announcement of the new federal budget, costs on these marketplaces have significantly increased.
Over the past few days, users have taken to social media to express frustration over prices skyrocketing to three or even four times what they used to be. But this sudden jump isn’t just about new taxes — there’s more behind the scenes.
So, What Changed?
The government has recently rolled out the Digital Presence Proceeds Tax Act, a new regulation aimed at foreign digital platforms operating in Pakistan. Under this act, a 5% tax is now applied to all goods sold online by foreign entities into the Pakistani market.
But that’s not all.
In addition to the 5% digital tax, online marketplaces such as Temu and AliExpress are now also subject to an 18% general sales tax (GST) — the same rate imposed on local businesses.
To understand the bigger picture:
A local manufacturer in Pakistan pays 18% GST plus 35% income tax when selling products. Meanwhile, international sellers were previously able to operate without any tax liabilities in Pakistan — a loophole that the government has now closed.
The Bottom Line
The combination of newly enforced tax regulations and the government’s push for fair competition between local and foreign sellers has led to this noticeable surge in prices. As a result, Pakistani consumers shopping on global platforms will now have to bear the cost of tax compliance, which was previously avoided by overseas companies.
