Facebook, Google, DailyMotion Could be Banned in Pakistan for Not Paying Taxes

Punjab Revenue Authority has been making efforts to bring internet giants in its tax net and had previously issued notices to Facebook, Google, DailyMotion for getting themselves registered in Lahore and pay taxes for the revenues they make out of Punjab.

Facebook, surprisingly, sent a reply to the PRA via a letter and said:

Registration with the PRA is not applicable to us as we aren’t taxable in the country. We are providing our online services from Ireland from where the multinational corporation is operating.

On the other hand, according to PRA act, advertisers — those Pakistani individuals and businesses that advertise through Facebook — are liable to sales tax. A section of PRA Act says:

Where a taxable service originates from outside Pakistan but is received or terminates in the Punjab, the recipient of such service shall be liable to pay the tax to the government.

PRA is essentially looking for a way to tax Pakistanis who advertise on Facebook, however, they can’t know the advertisers without Facebook’s help.

Facebook, while playing tactfully, is not even close to helping PRA as it doesn’t want to increase the cost of advertising on its platform by exposing advertisers’ list as by doing so the ad spend on its website will decrease.

Punjab Revenue Authority, in this situation, can do “Compulsory Registration” of such companies — including Facebook, Google, DailyMotion etc. — after which legal action can be taken against these companies.

PRA, under the legal cover, can approach Pakistan Telecommunication Authority and get these websites blocked in Pakistan for not paying taxes.

PRA has said that its legal wing is considering all possible options to get these websites with-in the tax net.

Via The News

Tech reporter with over 10 years of experience, founder of ProPakistani.PK

      • Common sense Use Krain PLEASE!!! Zong, Telenor, Ufone, Warid and Mobilink give social packages at a cheap rate, but millions of peoples pay the tax upon subscribing. These packages will come to an end, less or zero revenue from the tax will be generated. Just think how we will get more tax from these companies or from the packages being subscribed by 60 million users (Presuming)?

        • It means Government should not collect tax from flour mills just because the tax we r getting from truck owners who are transporting that flour and shopkeepers is enough….
          Telecom companies are just like tranport or wholesaler/retailer and these companies are “flour mills” so you can’t ignore any of them.

  • Banning these websites will pave way for Pakistani startups to flourish. Follow the Chinese model :)

    • Good! Am going to make another Facebook with API integration :P Oh No! The Cyber Law! I will be jailed for 5 years along-with 5 million rupees fine

    • I already make zero to probably 2 dollar per month with sh***tty pathetic pakistani web traffic. (Yeah, pakistani advertisers pay pennies for their ads). So banning these sites won’t affect me. But Propakistani may go into the trash can.

  • han bai lagao in pr tax … itna paisa khaty hain kuch Pakistan ka b faida ho

    • LOL They don’t give a fuck, it will be a great loss to our public. Our revenue is peanuts for them.

      • So is that why they bothered to actually respond to PRA? Dear lad, these tax theives go to great lengths to hide/evade taxes (no matter how miniscule) in countries where they have to pay.

  • its a serious issue and requires serious discussions. Why FBR is not active in this matter. If there is no law, promulgating law is quite easy. If taxed, the amount runs into million of dollars. If facebook, google, daily motion, twitter is earning from Pakistan,then they should pay taxes not only to Punjab but to all Pakistan. But Alas, our leaders have no guts to stand for country.

      • any business concern, not limited to pro Pakistani. Who so ever earn, pay tax or open off shore bank accounts as our elite done. we have precedence.

  • Facebook, Google or Dailymotion say pehlay ganjay say to tax nikalwa lo phir insay b lay lena

  • If these sites get banned, the government will be hurting the local economy. Otherwise its a bad idea altogether.

    • How exactly will it hurt local economy? On the contrary, it will benefit locals because advertisement money will be paid to publishers inside Pakistan. Right now, all that money is going abroad and not a penny is spent on anything even remotely related to Pakistan.

  • Pakistan mai Internal Tax ka Nizam Sahi nahi ha, Har koi Tax ki Chori karta ha Beshak wo Leader ho ya Aam Insan, Aur Facebook, Dailymotion, Youtube kiyu Tax Pay Karien ? They Are Operating Business outside from Pakistan, Aur Pakistani Awam in Websites ko Access Karne k liye DSL, Internet k Bills Pay Karti ha, aur Bills k Sath Taxes bhi Pay Kiye Jaty Hein. Tax GG (Ganja Group) se collect karnay ki Zarorat ha.

  • Aamir, in Last two paragraph are you suggesting the PRA should ban this site to bring them in net. If not, you should not even talk of such possibilities. As I would say as slogan “Aub Ban karnay ki batain choor do”.

    In addition we are already too much behind in cyber tech, specially in terms of tech giants supporting Pakistan, such stunts from authorities like PRA will further takes us back.

    BTW, where the (Random Word here) is PTA. They should manage all this kind of stuff and should be a party in between if someone wants to communicate. Even should analyze every case individually for its feasibility.

    Plus finally i just realized I got angry on Aamir, PRA and PTA in current comment. :-) But I guess for all the right reasons.

    • huh what a pathetic thinking.

      Whoever break law should be punished. Dumbs like you are the reason of corruption in country.

          • Whats the matter with you, was abusing necessary here. If he is criticizing someone for all the right reasons, than why your comment was necessary here.

      • Firstly, Mind your language man. Than have you read the law. Where does the law states that a offshore company which operates from another country have to Pay tax in Pakistan. It is those Pakistani people, who do financial business with these sites need to be taxed. So next time please study the laws and do some research before calling someone dumb.

  • fuck this govt. Taxes on everything. They will even tax the air flowing through punjab. Fucking assholes and fucking people wo vote them.

    • Mind your language and beware that everyone owns freedom .. who the hell are you to tell others what to do and what not to do ?

      Ps .. i know abusive language too that would be good enough for your future generations aswell but i like to keep limits

      I am a PMLN voter and i am happy with it

      • May I know the best reasons behind your happiness or satisfaction?

        Also it will be great if you answer these simple questions:
        What do you do?
        What is the job of your father?
        If you are not an student, are you going to see a govt job because of political relationships?
        If you are on job, is it govt? did you got the job on political relationships?

        • My fathers job is in govt sector and I will avoid naming that .. i own a small pesticide business and Partly study as well … i am not on job and i know many of my friends who got their jobs on merit … i dont want a debate as to which party is good and which is bad, i just want to have my right of choice instead being an independent citizen of pakistan who lives and want to remain in freedom who doesn’t want to be bullied by anyone to vote for a certain party

          • Appreciated, but independence should be something like in turkey, Canada, China, Australia, UK, US.
            Rest is your choice to live in peace and plan for future

          • Can you also answer his main question – “the best reasons behind your happiness or satisfaction?”

            PMLN must be doing something extraordinary for you/your clan. Maybe a road in front of your house or a tube-well in your locality that translates to your happiness but we’d like to see what is making you so darn happy!

            • No dear, PMLN is not doing any good to me particularly and even if there was something i’d be the first to name it bad culture and unhealthy political abuse of power. I did not write to my comment to create a war on political parties. I just wanted to express my right of choice. Yes, healthy discussions are good. I am up for that too but using abusive languages like these people wont do any good except promoting their exemplary calibre.

      • Mr PML N voter urf nooray, why dont these fucking ganjas pay their share of tax. Fuck u n ur PML n.

      • Google, Facebook and other donot give a fuck about this country. By banning them we the people living in this country will be the sufferers and loosers.

        • For the record, abusing me or anyone else wont name you for a medal but yes it will add up in your sins list if u know what i mean

  • oh man PML(N) is really up to suck every last drop of blood from anywhere possible !! taxing on Fb / Google / dailymotion ………………. first why these toads pay there own taxes & o yes bring the F money back in Pakistan which there all leaders / (all demoncracy parties) have looted from Pakistan, get that money back & also that panama leaks !! & even just lets assume (which ain’t gonna happen) that they got the tax from these social media giants (are they going to invest that money is Pakistan) or that would be transfer to Ganja Shareef (Son) in UK !!

    I am not a PTI supporter or to any other Demoncracy Party.

  • i am pretty sure the man behind all these taxation ideas is MR. Ishaq Dar. He just can’t get enough, and want to send lot of money back to his sons and family in the dubai so they can start and run their businesses. This man is a disgrace and until he is not removed from his seat, you will hear and see such ideas.

  • The Shitty FacBuk shud be banned in anyway! having different rules for Muslims & kashmir stance also!

    • Its their site and their rules. Why dont 1.5 billion muslims and over 50 muslim countries have the guts to develop something like google, fb, whatsapp etc……bcz we only shout …. but donot do our homework

      • agreed. but the question here is a bit different. to LEAVE & BOYCOT this. BTW this is not smthing without which one can’t live. Ppl have been living without it and are living without it!

  • Is’nt FB right? They are operating from abroad. If someone is giving Ads on their site its not their headache to pay taxes just for this single reason.

  • One way of thinking……A right way forward…… soon a time will come when all the online services will earn from Pakistan and not pay or follow any law here…… Soon a time will come when many Pak companies will loose a lot of money and jobs and people poverty level will increase….. Example.. One ONLINE store can kill a lot of business for small shops … its not a good option for a country with 200 Million ppl………I hope we have our own companies……

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