Temu has issued an official statement amid reports of significant price increases on its platform within Pakistan. Many shoppers have observed that product prices on major online marketplaces—such as Temu, AliExpress, and Daraz—have surged dramatically, with some items now costing three to four times more than before.
The recent escalation in prices is primarily attributed to new tax regulations introduced by the Pakistani government. Under the recently enacted Digital Presence Proceeds Tax Act, foreign e-commerce companies are now subject to a 5 percent tax on goods sold within the country.
Furthermore, platforms like Temu and AliExpress are also required to pay an 18 percent sales tax, aligning their tax obligations with those of domestic businesses.
Previously, foreign online retailers operated in Pakistan with minimal tax burdens, offering more competitive prices. Now, with these additional levies, the operational costs for such platforms have increased significantly, which is reflected in consumer prices.
In comparison, local manufacturers already bear an 18 percent sales tax along with a 35 percent income tax on their sales. The new tax measures mark a shift towards a more equitable tax environment but also signal that higher prices may become commonplace for Pakistani consumers shopping online.
Temu’s official response emphasizes that the combination of evolving tax policies and rising global operational costs is reshaping the online shopping landscape in Pakistan.
The company suggests that consumers should anticipate these higher prices to persist as the market adjusts to the new regulatory framework.
