FBR Sets Rs. 200,000 Cash Limit for E-Commerce Cash on Delivery Orders

The Federal Board of Revenue (FBR) has officially imposed a transaction limit of Rs. 200,000 for cash-based payments on e-commerce Cash on Delivery (CoD) orders in Pakistan.

This decision, announced through Circular No. 02 of 2025-26 (Income Tax) on August 12, 2025, is part of the government’s ongoing initiative to promote a cashless economy and encourage digital transactions.

Uniform Limit for Retail and E-Commerce Transactions

According to Section 21(s) of the Income Tax Ordinance, 2001, the same Rs. 200,000 limit that applies to cash payments at retail outlets will now also be enforced for online shopping CoD orders.

The FBR emphasized that this step will:

• Encourage digital payments such as debit/credit cards, bank transfers, and mobile wallets.

• Enhance transparency in transactions.

• Reduce tax evasion by ensuring proper documentation of large payments.

Impact on E-Commerce Businesses & Customers

For e-commerce stores, this means customers will need to shift toward online payment methods for orders exceeding Rs. 200,000. Shoppers are encouraged to make use of bank transfers, digital wallets, and card payments for smoother transactions.

The FBR’s Rs. 200,000 limit is expected to make payment processes more efficient, build trust in online shopping, and align Pakistan with global digital commerce practices.