ISLAMABAD: The Federal Board of Revenue (FBR) has warned social media giants, including Google, Facebook, and Youtube, to pay taxes.
It was stated by FBR Member Inland Revenue (Operations) Dr Muhammad Ashfaq Ahmed during the meeting of the National Assembly Standing Committee on Finance and Revenue in Islamabad.
The FBR official stated that the authority has enforced Rs 1.4 billion declaration in the income tax return by the Netflix last week. During the committee meeting, the FBR Chairman and a local e-commerce platform blamed each other on the issue of taxation of digital platforms.
FBR Chairman stated that it was agreed with the e-commerce platform that they would act as a withholding agent and deduct only 2 percent tax from the un-registered sellers. “Now they are not honoring their agreement,” he added,
An official of the e-commerce platform informed that it was impossible to work as a withholding agent on the behalf of the FBR. “We are already sharing data of registered and unregistered sellers which could be used for broadening the tax base,” he added. The finance committee requested the FBR to defer the proposal for one year.
