Buyers in Pakistan are shocked as Temu, AliExpress Prices Increased in Pakistan after the new federal budget. Many shoppers have noticed items on these sites now cost up to three times more than before.
What caused this sharp rise?
The government introduced the Digital Presence Proceeds Tax Act. It adds a 5 percent tax on products sold in Pakistan by foreign online platforms. This tax aims to make things fairer for local sellers who already pay taxes.
In addition, Temu and AliExpress must now pay an 18 percent sales tax. Local businesses have long paid this rate, along with around 35 percent income tax. Before, foreign platforms sold goods in Pakistan without paying these taxes. The new tax closes that gap.
Yet, experts say these taxes alone don’t explain why Temu, AliExpress Prices Increased in Pakistan by as much as 300 percent. Many believe Temu and sellers raised prices to prepare for possible extra customs duties or new hidden charges.
The sudden tax policy changes created uncertainty. To avoid losses, foreign sellers pushed prices higher as a precaution. This explains why the increase is more than what the new taxes should have added.
Global shipping costs and currency depreciation add to the problem. As the Pakistani Rupee weakens against the US Dollar and Chinese Yuan, imported products naturally become more expensive.
There is hope for buyers, though. Prices may drop once sellers better understand the tax rules and adjust to the new system. Some online experts predict a correction in the coming weeks as things become clearer.
Temu and AliExpress remain popular because of their huge range and deals. But Pakistani shoppers must now plan for taxes and possible customs checks before buying.
The government says the new rules will increase tax revenue and protect local businesses. Shoppers, meanwhile, hope prices stabilize soon.
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