Govt Plans to Tax E-Commerce Sector in Pakistan

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

  • If one complies with tax laws, online commerce is already taxable. FBR will online include words like “ecommerce, online shopping, online trade” etc. in its policies and notifications.

      • NTN showing tax payers status !
        i will get last tax status amount via e-filing
        That’s for sure this is origial site to using on public like daraz & lootlo.
        Warna New Online to Facebook pe roz ate rehty hai

  • I have ordered 3 handsets from Telenor Pakistan Website, I received order number via email, but still i am unable to receive after one month. No response on complaints.

  • “Importance of Having a Good Tax Policy” for the average class. The rich can keep their money.

  • other electronic Banking transactions through internet etc. should not be under the e-tax. For more trade and e-business it should be exempted from the tax. why we should pay e-tax on e bill payments, e transfer and other e payments.

    if there is e trade, FBR should charge to traders not the consumer.

  • Phr main khuch kahoo ga people will start bashing me as PTi member but trust me these people have no sense no vision bas tax laga do simple in ka jawab yah hai jinhoo nay tax return file ki hai un ka audit shoroo kar dia khair say or jo sirye say hi nai detye un ko koi pochnye wala nai phuddo khata hai bhai is mulk main jiye Shair Jiye bhtoo raj kay lotoo

  • well govt’s attempt to increase tax revenue is a bit confusing. Why would people pay tax to support a state where ministers and executives live lavish filthy lives while people are dying of mosquitoes. What’s the service in return

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