- Advance tax on offshore digital services offered to increase to 15%.
- The FBR offers a digital tax to recover 39 billion rupees.
- The tax will apply to companies like Google, Youtube.
Islamabad: The Federal Board of Return (FBR) has provided an additional turnover of 65 billion rupees in the next financial year from its two proposed tax measures targeting electronic commerce and international platforms flooding their goods in Pakistan, The news reported Wednesday.
Previously, the early tax on offshore digital services was set at 10%, but it is now proposed to increase to 15%. This tax will apply to companies like Google and Youtube, with the intention of encouraging them to establish offices in Pakistan.
The withdrawal of the exemption from the importation of solar panels and parts with a taxation of 18% of the TPS will generate additional income of 20 billion rupees. However, the PPP extends the opposition in its own right to approval of the TPS on solar panels. If parliament does not grant its assent, the government will have to offer alternative measures to provide 20 billion rupees in the National Kitty.
The income tax and the sales tax have been struck on digital platforms by different means. To tax international electronic commerce flooding their goods in Pakistan, the digital presence offered by the FBR carried out a tax to reach 39 billion rupees with effect from July 1.
The taxation of domestic electronic commerce activities through income tax and sales tax will bring back 26 billion rupees in the National Kitty.
In the 2025-26 budget, FBR slapped additional RS312 billion tax measures. The main revenue spinner must increase early tax rates on the rendering of services which will bring 70 billion additional rupees.
The withdrawal of the exemption from TPS on imports and supplies for the old FATA / PATA will bring in additional 30 billion rupees. The decision of the FBR of Gifler The tax rate increased on the benefit on the debt will cough 56 billion rupees. The proposal to withdraw the exemption from the pension will help FBR to receive 2 billion additional rupees.
The withdrawal of the lower GST rate on local automobiles, having an engine capacity of 850cc, will bring 7 billion additional rupees in the budget for 2025-2026. The increase in tax rates on early tax on non-resident payments will bring back 10 billion rupees. The rationalization of the second calendar will bring 19 billion additional rupees.