The Federal Board of Revenue (FBR) has set a cash transaction cap of Rs. 200,000 for e-commerce Cash on Delivery (CoD) orders.
Announced via Circular No. 02 of 2025-26 (Income Tax) on August 12, 2025, the move is part of the government’s ongoing push toward a cashless economy. The circular references Section 21(s) of the Income Tax Ordinance, 2001, noting that the same cash payment limits applicable at retail outlets will now extend to e-commerce CoD transactions.
The FBR highlighted that this step supports the government’s goal of encouraging digital payments and reducing dependence on cash. By imposing the Rs. 200,000 limit, authorities aim to streamline transactions, increase transparency, and help curb tax evasion in the growing online retail sector.
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