Courier companies across Pakistan have raised their delivery charges due to new taxes on the logistics sector.
The federal government has increased GST rates and added new withholding taxes on courier services in the latest budget. Company officials say the extra tax burden makes it harder to maintain old rates.
A senior executive at a leading courier firm told FactFile that delivery charges have risen by 10% to 18% on average. The new rates took effect from July 1. He explained the increase was necessary because of rising expenses, fuel costs, and the new taxes.
“The courier sector already faces high overheads from fuel price swings and inflation. The new tax measures have added more costs. Revising delivery charges was unavoidable,” the official said.
Industry sources believe this will directly hit small e-commerce businesses, online sellers, and retail customers who rely on low-cost delivery.
Many online sellers worry higher shipping rates will discourage buyers. Small parcels and low-value goods are most affected. “Most of my customers are price conscious. Higher delivery fees may impact order volumes,” said an online store owner from Karachi.
Logistics experts warn the sector could see more price changes if fuel costs keep climbing in the coming months.
Consumer groups are urging the government to review the new tax policies. They say households and businesses already face record inflation and should not bear more costs.
He further said that the increasing taxes, petroleum product prices, and rising utility charges — especially electricity, gas, and internet — are squeezing the profit margins of online businesses in Pakistan. Moreover, he pointed out that these extra costs are likely to be passed on to customers. Therefore, delivery charges may increase for both domestic and intracity orders placed through online marketplaces.
The Pakistan Courier Association has also asked for tax relief. They say it would help the industry absorb rising costs without passing them fully to customers.
The State Bank of Pakistan (SBP) reports that nearly 8,000 e-commerce merchants have already registered with the banking system. Meanwhile, FBR officials clarified that the new e-commerce tax rules will not force one-time sellers or women who sell goods from home to register.
Additionally, they emphasized that this exemption aims to support small sellers and encourage home-based businesses.
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