The Federal Bureau of Revenue (FBR) has imposed 0.5% tax on all online companies who are earning through online trading.Now the e-commerce industry is not an untaxed sector anymore.
According to the amendments posted on the official website of Federal Board of Revenue for the year 2017-18, a new tax on concessionary basis has been forced on all companies who done businesses through online trading. The new concept has been termed as “online marketplace”, and tax has been imposed at the rate of 0.5%.
“This tax policy would be imposed on the earnings of the companies doing e-commerce through online transactions; it has been imposed from July 1, 2017”
On the other hand, this notice of paying the tax will also be imposed on the individuals that are earning via online income.
The industry of E-commerce is getting a boom in Pakistan and we are witnessing a major development in this sector which is really positive news.
Earlier this year, the administration put a lot of efforts to improve the performance of small and medium-sized enterprises (SMEs) in Pakistan through e-commerce.
As is this regard, the Trade Development Authority of Pakistan (TDAP) signed a MoU (Memorandum of Understanding) with Alibaba to foster and promote the growth of global exports of products.
Resources claimed, Alibaba will soon sign a Memorandum of Understanding with the Benazir Income Support Programme (BISP) for the online sale of the products made by the recipients of BISP.
E-commerce includes the following sectors:
- Business activities taking place through the internet.
- Online shopping.
- Online trade.
- Other electronic transactions via internet etc.
This news may get in the way the growth of the rising industry that is still in its development phase. As traditional retailers also converting their business to online business and this sector is getting bigger day by day.