Why the FBR is Cracking Down on Your Cash on Delivery Orders
If you often use the ‘Cash on Delivery’ (CoD) option for your online shopping, there’s a new rule you need to be aware of. The Federal Board of Revenue (FBR) has just put a cap on how much you can pay in cash for a single e-commerce order.
The New Limit
From now on, any online purchase paid with cash on delivery cannot be more than Rs. 200,000. If your order total is higher than this amount, you’ll have to use a digital payment method, like a credit/debit card, bank transfer, or a mobile wallet.
This was announced through an official circular on August 12, 2025.
Why Is This Happening?
This isn’t a random change. It’s part of the government’s bigger push to move Pakistan towards a cashless and more digital economy. According to the FBR, the main goals are to:
- Encourage people and businesses to use digital banking channels.
- Increase financial transparency.
- Make it harder to avoid paying taxes.
The FBR has clarified that this isn’t a brand new law, but rather an extension of an existing rule (Section 21(s) of the Income Tax Ordinance, 2001) that already applies to cash payments at physical retail stores. They are simply making sure the same limit applies to online shopping.
For most day-to-day online orders, nothing changes. However, for big purchases like high-end electronics, jewelry, or furniture, paying with a large amount of cash at your doorstep will no longer be an option.
