ISLAMABAD – The Commerce Ministry has proposed harmonized provincial salestax regime through the application of uniform sales tax rates on servicesby avoiding double taxation and simplifying the filing procedure for onlinebusinesses under the draft e-commerce policy.
The currently applicable rates of sales tax in Punjab, Sindh, KPK andBalochistan are 16%, 13%, 15% and 15% respectively. In general, theprocedures for the filing of sales tax returns are also cumbersome andcomplicated; however, this may not be the case with an online businesshaving transactions’ data recorded in digital format, maintained the draftpolicy.
The ministry has proposed:
(i) Harmonized provincial sales tax regimes through the application ofuniform sales tax rates on services and avoiding double taxation.
(ii) Simplified filing procedure through the introduction of a one-pagedsales tax return form.
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The cabinet is likely to approve the policy next week.
The Commerce Ministry, in consultation with other stakeholders, hasfinalized E-commerce policy framework to create an enabling environment forholistic growth of e-commerce across all sectors of the country, with aspecial focus on development and promotion of SMEs to transform Pakistaninto a significant player in the regional and global digital economy.
