PEA Demands Tax Relief for Women-Led eCommerce Businesses
The government has been urged by the Pakistan eCommerce Association (PEA) to reevaluate its tax policy regarding digital payment methods and local e-commerce enterprises. The organization issued a warning that women-led startups and small businesses are disproportionately bearing the severe financial strain.
Women Entrepreneurs Under Pressure
PEA General Secretary Sehrish Ali emphasized that innovation and profitability are being hindered by the new taxes included in the federal budget for 2025–2026. These taxes include an 18% GST and an extra 0.25% to 2% fee on digital and cash-on-delivery payments.
“These measures are discouraging local businesses from scaling, while foreign platforms continue to operate in Pakistan without facing equal obligations,” Ali said. She emphasized that women entrepreneurs, who already face barriers in financing and market access, are now at greater risk of being pushed out of the digital ecosystem.
Existing Contributions Already High
Local e-commerce businesses already pay high income and sales taxes, according to the group. Their capacity to compete with global platforms is further weakened by the addition of new levies, endangering Pakistan’s digital economy.
Advocacy for Women-Led Businesses
PEA has formed a special taxation committee to address the growing concerns of women-led enterprises. Recently, Ali led a public demonstration, calling for financial and regulatory relief and highlighting the critical role of women in shaping Pakistan’s e-commerce sector.
“Supporting women in e-commerce is not just about fairness; it’s about unleashing the economic power of half the population,” she added.
Risk of Digital Decline
The association warned that without immediate tax reforms, thousands of women-led businesses could shut down, weakening Pakistan’s standing in the global digital economy.
The Bottom Line
The Pakistan eCommerce Association is pressing the government for urgent tax relief measures to protect women-led startups, safeguard local SMEs, and strengthen Pakistan’s digital competitiveness.