How much will online shopping cost with new GST hit?

ISLAMABAD: Shopping for clothes and other items online has become more expensive after the government added new taxes under the latest finance bill. General Sales Tax (GST) is now being charged on many products, including clothing, which will impact buyers across the country.

Those who prefer shopping through local and international websites will now have to pay extra, as new taxes apply to each purchase made via online platforms.

The government was already charging GST of 16 per cent and now the government has imposed a one per cent tax on digital payments not exceeding Rs10,000.

This means that if you buy a suit worth Rs 9,000, you will have to pay Rs 10,530. Add standard delivery charges of Rs200, and the total cost will come to Rs 10,730.

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For digital payments between Rs10,001 and Rs20,000, a two per cent tax will apply, while purchases above Rs20,000 will be taxed at 0.25 per cent of the total amount.

International shopping is also affected. If you order from websites like AliExpress, Temu, or Amazon, you will now be charged a five per cent tax on the amount paid. This tax will be collected by banks or payment services at the time of transaction.

The government has also proposed stricter rules for online sellers. Under the new plan, shopkeepers who are not registered under the Sales Tax Act will not be allowed to sell through online platforms. This step is aimed at bringing more sellers into the tax net and regulating the growing e-commerce market.