Government of Pakistan is considering to tax e-commerce sector and a new tax is likely to be imposed on e-commerce businesses, Business Recorder reported today while citing unnamed sources.
Report said that FBR has submitted a proposal for taxing e-commerce businesses that might get approved in financial budget for next year.
A lot of categories fall under the e-commerce umbrella including:
- business activities taking place through internet
- online shopping
- online trade
- other electronic transactions through internet etc.
Importance of Having a Good Tax Policy
A good e-commerce tax policy will have to ensure that the businessmen are able to see the links between their business, their profits or turnovers and the consumption or income taxes related to them.
Any rules and regulations concerning taxes that are not understood by the businessmen or the taxpayers should be avoided.
The Federal Board of Revenue’s (FBR) instructions to the Chief Commissioners of Large Taxpayer Units (LTUs) and Regional Tax Offices (RTOs) mention that the budget exercise 2017-2018 has commenced and the budget proposals have to be made in the context of current economic practices.
Tax Policy Conference to Be Held at FBR Headquarters
The FBR is directed to request that concerned chief commissioner or a focal person/persons nominated by her/him fully conversant with the budget proposals prepared by the respective RTO/LTU may kindly participate in the Tax Policy Conference in respect of budget proposals for 2017-18 scheduled to be held on Thursday, 16th March, 2017 at FBR (HQ) Islamabad.
FBR has asked that the chief commissioner and the concerned focal persons nominated by the chief participate in the Tax Policy Conference. They will be discussing budget proposals at the conference which will be held on 16th March at the FBR headquarters.
The special assistant of the Prime Minister will be heading the meeting.
Enhancing Taxation Practices in The Country
These suggestions put forward by the FBR are supposed to help enhance taxation in general through:
- broadening of tax base;
- measures for improvement in the tax to GDP ratio;
- rationalisation/analysis of tax exemptions;
- withholding taxes and their application for economic development in the country
- taxation of e-commerce
To help the participants of the Tax Policy Conference, the chief commissioner as well as the focal people have been asked to make a small presentation on the main budgetary proposals.
The proposals are supposed to focus on removing problems and enhancing economic growth vis-a-vis state revenues.
Via Business Insider