The Federal Board of Revenue has decided to bring online business people into the tax net. The tax will be applicable to those doing online business from September 1. According to the report, a statement has been issued by the FBR in which it has been stated that the people doing online business will be obliged to pay 2% tax on the purchase of all items.
Online Businesses to be Brought Under the Tax Net: FBR
According to the FBR, this tax will be levied on non-filer online business owners, while no additional tax will be levied on tax filer business owners. After the decision of FBR to bring online businesses under the tax net, IT and online business people have lamented the government’s move, saying that at the time when the IT industry is growing, Pakistan’s IT exports are increasing, such a move will have a negative effect on the IT industry.
Some people involved in online business say that how will the FBR check who is paying the right taxes. Is FBR going to check the Google accounts and logs of people involved in online business?
It should be noted that in Pakistan, IT exports have reached around three billion dollars, which is the highest level in history. According to Abdul Razzaq Dawood, IT exports have increased by 47.4% in the financial year 2021. In the last fiscal year, the exports of the IT sector stood at 2.12 billion dollars. FBR should review its decision as it can seriously affect the booming online business ecosystem in Pakistan.