ADB Urges Pakistan to Enforce 5% Uniform GST on All Digital Transactions

High, Uneven Digital Taxes Threaten Pakistan’s Investment Climate, Warns ADB

The Asian Development Bank (ADB) has recommended that Pakistan introduce a uniform 5% general sales tax (GST) on all digital transactions. This step, the ADB says, would boost nationwide e-commerce adoption, curb cash-based inefficiencies, and help document the informal economy.

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In its newly released report on Pakistan’s digital ecosystem, the ADB also warned that high and inconsistent taxes on digital services and infrastructure threaten foreign investment and could hinder the growth and expansion of Pakistan’s digital economy if left unaddressed.

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