A tax on e-commerce is considered by Pakistani Government and we can see the imposition of this new tax on e-commerce business in Pakistan.
According to report, a proposal has been submitted by FBR to tax e-commerce business and this proposal can be approved for next year’s financial budget.
The activities come under e-commerce business include:
- business activities taking place through internet
- online shopping
- online trade
- other electronic transactions through internet etc.
Importance of Having a Good Tax Policy
It has to be ensured with a good e-commerce tax policy that provide businessmen with links about their profits, business and turnover and the income tax applied on these businesses.
Those rules and regulations should be avoided if they could not be understood by taxpayers or businessmen.
According to instructions by FBR to Regional Tax Officers (RTOs) and Chief Commissioners of Large Taxpayer Units (LTUs), the preparation of budget 2017-18 has started and the current economic practices should be considered while making budget proposals.
Tax Policy Conference to Be Held at FBR Headquarters
According to the directions given to FBR, that the chief commissioner or focal person fully aware about the budget proposals prepared by RTO & LTU should participate in the Tax Policy Conference for budget 2017-18 that will be held at FBR (HQ) Islamabad on Thursday 16th March 2017.
During this conference, budget proposals will be discussed with chief commissioner and the concerned focal person. The meeting will be headed by special assistant of PM.
Enhancing Taxation Practices in The Country
Taxation in general can be enhanced by these proposals presented by FBR via:
- broadening of tax base;
- measures for improvement in the tax to GDP ratio;
- rationalisation/analysis of tax exemptions;
- withholding taxes and their application for economic development in the country
- taxation of e-commerce
the chief commissioner and focal persons will also make a small presentation on these budget proposals in order to make it easier for the Tax Policy Conference to understand.
The proposals will be presented in order to eliminate current problems and increase state revenue to enhance economic growth.