KARACHI: The government has introduced new taxes on local and foreign e-commerce marketplaces, making online shopping costlier for Pakistani customers.

Moreover, the Finance Bill has proposed a tax on social media advertising in Pakistan by foreign e-commerce platforms.

The bill has proposed amendments to the Income Tax Ordinance, 2001 to add the definitions of e-commerce platforms and “digitally delivered services”.

Under the proposed amendments, e-commerce would include the “sale or purchase of goods and services” through “websites, mobile applications or online marketplaces”.

In a consequential move, govt looks to tax foreign companies for selling goods, running ads in Pakistan

Meanwhile, digitally delivered services would include music, audio and video streaming services, cloud services, online software applications, telemedicine, e-learning, and online banking etc.

As per the proposal, local e-commerce companies will have to pay a tax on every purchase made from their platforms within Pakistan.

For digital payments, a tax........

© Dawn Business