Budget 2021/2022: Tax imposed on sales made through online marketplace

Budget 2021/2022: Tax imposed on sales made through online marketplace

ISLAMABAD: The domestic sellers on online platforms like Amazon and Daraz have been brought into tax net, Finance Minister Shaukat Tarin announced this while presenting budget 2021/2022 on Friday.

“We have seen extraordinary sales through online marketplaces especially due to Covid-19 lockdowns.”

However, contribution made by these e-commerce digital platforms in national exchequer is negligible, he added.

Accordingly, it is proposed to bring third party sales made through established online marketplaces within the purview of sales tax.

Industry has rejected the proposal saying that this step is against e commerce policy.

It is new industry. This step would discourage development of online business in Pakistan, a small seller said.

This would badly effect development of online small businesses.

Females can sell goods from home, students and small businesses can sell goods from home as well.

They have been subjected to 17 percent sales tax without any input tax. New entrepreneurs nipped in the budding phase.

The small sellers have sought intervention of the prime minster to withdraw such announcement.

It is alleged that the decision to curb online business taken on the pressure of retail giants.

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