Govt plans to impose Tax on eCommerce industry in Pakistan
According to the buzz the eCommerce industry is going to be taxed as per the instructions by the Government of Pakistan. The news was revealed by an anonymous source.
The report said,
“FBR has submitted a proposal for taxing e-commerce businesses that might get approved in financial budget for next year.”
E-commerce includes the following sectors:
- Business activities taking place through internet.
- Online shopping.
- Online trade.
- Other electronic transactions through internet etc.
Why good tax policy is so Important:
The tax policy plays vital roles in the development of a country. A good tax policy ensures that all the system is managed equally and an equilibrium is created.
The eCommerce industry tax will need to create some sort of policy that will promote the link between the businessmen and business.
The rules and regulations apply.
According to the Federal Board of Revenue’s (FBR) instructions to the Chief Commissioners of Large Taxpayer Units (LTUs) and Regional Tax Offices (RTOs) the budget if year 2017-2018 is prepared and soon will be applicable.
Tax Policy Conference:
Prime Minister will appoint special assistant to head the meeting that is to be held at FBR (HQ) Islamabad on Thursday, 16th of March , 2017; under the title of Tax Policy Conference. The meeting will welcome all the proposals for the budget 2017-2018.
FBR requested 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 should participate in the meeting to give the precious contribution towards economy of Pakistan.
FBR proposed:
- broadening of tax base;
- measures for improvement in the tax to GDP ratio;
- rationalization/analysis of tax exemptions;
- withholding taxes and their application for economic development in the country;
- taxation of e-commerce.
For assistance of the participants of Tax Policy Conference, the chief commissioner and the focal people were guided to create small presentations on budgetary proposals. The presentation will feature the solution of the problems to enhance the growth of eCommerce industry.