If you’ve recently opened Temu and AliExpress in Pakistan and thought, “Wait, was this bag always Rs. 1,200?” you’re not imagining things. In fact, countless users across the country are noticing the same thing: prices have shot up in some cases, even tripled.
Understandably, most people are pointing fingers at the federal budget, and while new taxes are part of the picture, they don’t explain everything. So what’s actually causing this sharp spike?
As part of its 2025 budget, the Pakistani government introduced a Digital Presence Proceeds Tax, which basically means that if a foreign website is selling products in Pakistan, it now has to pay a 5% tax on those sales. In addition, platforms like Temu and AliExpress are now being asked to pay an 18% sales tax, just like local businesses already do.
So yes, some price increases are natural. After all, these platforms were previously selling in Pakistan without having to pay these taxes, giving them a pricing advantage over local sellers.
Here’s where it gets interesting: a 23% total tax doesn’t explain why a Rs. 400 item now costs Rs. 1,200. What’s really happening, experts believe, is that these companies are playing it safe. They may not fully understand how the new tax rules will be applied, especially regarding customs, duties, or any sudden regulatory demands.
To stay ahead of any surprises, platforms like Temu may have temporarily raised prices as a buffer; it’s a cautious move, not necessarily a permanent one.
Quite possibly, the prices will go down again once the dust settles and there’s more clarity on the tax rules and logistics; there’s a good chance the prices will level out or at least become more reasonable. For now, though, it’s a bit of a waiting game.
It’s easy to get frustrated by the rising costs, especially for regular online shoppers. But it’s not just about taxes it’s also about uncertainty, and companies hedging their bets. If you’re holding off on placing that order, you might be doing the smart thing.
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