Facebook Refuses to Pay Tax to Punjab Revenue Authority

Sources informed that the government cannot block Facebook or any other social media websites for not giving tax to the Punjab government.

According to top officials, the government has neither technology nor proficiency to block any website.

“We through internet service providers blocked YouTube, but it was a useless attempt as users accessed it through proxies and other add-ons.”

A top official said.

Facebook Refuses to Pay Tax to Punjab Revenue Authority

He further added that with every passing day more websites are developing. Websites cannot be blocked on the wish of any government institute.

“There is nothing wrong in asking any company to pay tax. But when you are talking to some multinational giant, who does not have any physical presence in the country but virtual only, you have to be extra careful.”

He said.

The government is in a fix after social networking giant Facebook has declined to pay any sales tax to PRA.

Punjab Revenue Authority (PRA) had sent notices two months ago to social websites including Facebook, Google, Dailymotion and YouTube. The websites were indicated to register their online advertisement business with the Authority.

Only Facebook answered and said that since it is working from Ireland it does not need to register with the authority. So it refused to pay any kind of tax.

PRA Chairman Dr Siddique Raheel, allegedly, confirmed that the authority had received Facebook’s response. The department’s legal wing was assessing the reply.

Revenue department is of the view that when a chargeable facility devises from outside the country but is received or dismisses in Punjab, the beneficiary of such service shall be accountable to pay the tax to the government.

Impractical demands may cause discomfiture for the government. In this specific case it appears those who endangered big businesses do not know essentials of internet and its maneuvers.

He directed the revenue department to first make a favorable environment in the country. After making the suitable conditions, request social media giants to open offices in Pakistan.

Also Read: Punjab Government Send Tax Notices to Google & Facebook

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