Pakistan eCommerce Association Urges Tax Relief for Women-Led Businesses Amid Rising Burden

The Pakistan eCommerce Association (PEA) has called on the government to urgently review its taxation policies on local e-commerce companies and digital payment transactions, warning that the rising fiscal burden is disproportionately impacting women-led startups and small businesses.

PEA General Secretary Sehrish Ali said that the new levies introduced in the 2025–26 federal budget—including an 18% GST and an additional 0.25% to 2% tax on cash-on-delivery and digital payments—are stifling growth and pushing many women entrepreneurs and SMEs toward closure.

“These taxes are not only limiting the expansion of local players but also creating an uneven playing field against foreign platforms that operate in Pakistan without facing equivalent obligations,” Sehrish Ali said.

She emphasized that women entrepreneurs, who already struggle with limited access to financing and resources, are among the hardest hit. “Women-led startups and SMEs are bearing the brunt of these measures, and their survival is at risk,” she added.

The association noted that many domestic e-commerce companies are already contributing significantly through existing income and sales taxes, but the new measures further undermine their competitiveness in the digital economy.

Ali, who has been actively raising the issue at press conferences, media forums, and policy discussions, said PEA has established a special committee to address taxation issues and advocate for the protection of women-led businesses.

Recently, she led a public demonstration highlighting women’s empowerment and urging the government to extend both financial and regulatory support. “Supporting women in e-commerce is not just about gender equality—it’s about unlocking the economic potential of half the nation,” she said.

Ali has also represented Pakistan at international forums in Singapore, Malaysia, Qatar, and the UK, where she highlighted the importance of nurturing women-led businesses in healthcare, technology, and digital commerce. Through her work with Deployers and DeLogics, she continues to provide training and career opportunities, enabling hundreds of women to join the digital workforce, launch startups, and generate sustainable livelihoods.

Reiterating its stance, the PEA warned that without immediate policy reforms and tax relief, Pakistan risks losing its digital competitiveness, with thousands of women-led enterprises facing potential shutdown.