ISLAMABAD – In a major step toward promoting digital transactions, the Federal Board of Revenue (FBR) has capped cash on delivery (CoD) payments for e-commerce orders at Rs. 200,000.
The announcement was made via Circular No. 02 of 2025-26 (Income Tax) on August 12, 2025, reiterating that the cash payment ceiling under Section 21(s) of the Income Tax Ordinance, 2001 now extends to online purchases as well as retail outlets.
The FBR explained that the measure is designed to reduce reliance on cash, improve payment traceability, and curb tax evasion. By aligning rules for both physical and online transactions, the government hopes to make Pakistan’s economy more transparent and less cash-dependent.
Officials further stated that the Rs. 200,000 cap will also encourage merchants and customers to opt for bank transfers, credit/debit cards, and other digital modes of payment.