FBR plans to impose 33% Taxes on Google in Pakistan

As per a report published in Express Newspaper dated 17th Jan 2015, Federal Board of Revenue intends to impose 33% taxes on Google generated revenues in Pakistan. This is confirmed by the FBR sources. According to the sources, the summary is already in discussion.

Due to large shortfall in tax collection, FBR is looking for alternatives and this is one of them. FBR is already collecting taxes on payments made to Google and such big websites i.e. Facebook, Daily Motion etc. These payments amount to Rs. 25 billion during 2014. However, there is no tax net on the revenues generated by Google in Pakistan through other means. FBR is yet to define the mechanism for finding out the revenues of these companies.

This is not something new! Countries including India, Egypt etc. are already collecting taxes on Google generated revenues. Hence, they are liable to pay taxes in Pakistan too. The summary is to be moved to Finance Minister soon. And the finance minister, currently Ishaq Dar, will approve/disapprove the summary.

Bad news for bloggers too! FBR is also planning to impose taxes on Google Ad-revenues earned by bloggers countrywide. There are no further words regarding the percentage of your earning which you will need to pay as taxes. The legislation is yet to be made. But well, if true, this is going to hurt thousands of bloggers in the country. FBR is now trying to target weak community for tax collection rather than getting hands on big goons.

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