Customers may have to spend extra money in some cases to buy products online from the next fiscal year. This is because the interim government plans to triple the VAT (Value Added Tax) on online sales commission in the budget for the 2025-26 fiscal year. Stakeholders say that ultimately, this burden will fall on the customer.

Currently, many retailers in the country sell their products online through platforms like Daraz, Chaldal, Foodpanda, and Sheba.xyz. In return, these sellers have to pay a specific rate of sales commission to the platforms, on which VAT is levied at a specific rate. Currently, this VAT rate is 5%, which the interim government is considering increasing to 15% in the next fiscal year. Many small entrepreneurs rely on these platforms to survive. If the VAT on sales commission increases, its impact will fall on all parties.

“This increase in VAT on online sales commission will directly impact large e-commerce platforms and also put pressure on numerous small retailers who rely on these platforms to conduct their business, and in the long run, its burden will fall on the customer,” commented A K M Fahim Mashroor, Chief Executive Director of local e-commerce company AjkerDeal. He told TechWorld, “This increase in VAT on online sales commission will directly impact large e-commerce platforms, such as commission-based e-commerce companies like Daraz, Pathao, or Foodpanda. Primarily, those whose business revenue model depends on sales commission will be directly affected, and their business costs will increase. In the long run, they will actually recover this cost from the customers. Meaning, if the rate of VAT increase remains in the final budget, it will indirectly fall on the customers. From that perspective, it can be said that it will have a negative impact on the e-commerce industry.”

Fahim Mashroor also stated that the increase in VAT on online sales commission will not affect those who operate e-commerce businesses through their own websites or via Facebook.

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