Punjab Revenue Authority has already issued notices to internet giants Google, DailyMotion and Facebook in order to get registered in Lahore as it wants to take taxes from them for getting huge profit from the province.
But facebook replied to PRA through a letter that they are not taxable in Pakistan as the multinational corporation is operating from Ireland from where they provide their online services.
According to a section of PRA Act, the individual and business Pakistani advertisers of Facebook will have to pay sales tax.
The recipient of such service has to pay tax to the government that originates from outside Pakistan but receives the service in Punjab.
It is clear that PRA wants to take tax from Pakistani advertisers of Facebook but it is not possible without help from Facebook.
Facebook knows that exposing its advertisers will increase the cost of ads that will end in the decrease of ads on its network due to which it is trying its best to avoid giving the names of its advertisers to the provincial government.
In this situation, the registration of companies like Facebook, Google and DailyMotion can be mde compulsory by PRA after which they can take legal action against these companies.
According to law, PRA can also consult PTA in order to block these companies in Pakistan for notpaying taxes to them.
According to PRA, they are trying to bring these companies under tax net by taking any possible legal action.
Follow
