FBR’s Taxation on Home-Based Online Sellers
ISLAMABAD: The Senate Standing Committee on Information Technology has raised serious concerns over the Federal Board of Revenue’s (FBR) decision to impose taxes on individuals selling products from home through online platforms.
During a recent meeting, the committee chairperson stressed that a significant number of Pakistanis, particularly women and small-scale entrepreneurs, rely on home-based businesses and e-commerce platforms to sustain their livelihoods. She cautioned that levying taxes on such ventures could discourage entrepreneurship and further burden those already struggling to rebuild their lives, especially in flood-affected communities that require support rather than added financial pressure.
The discussion also sparked a broader debate over which ministry should regulate e-commerce—whether it falls under the Ministry of Information Technology or the Ministry of Commerce. The IT Secretary explained that the new taxes were specifically applied to e-commerce transactions and not on IT services.
However, Senator Afnanullah countered by arguing that e-commerce is an essential component of the IT ecosystem. He warned that taxing this sector without a well-thought-out framework could stifle growth, hinder digital innovation, and discourage startups from entering the market.
Committee members further emphasized that any taxation policy must take into account the plight of people residing in flood-affected regions. They argued that exemptions or relief measures are crucial to avoid worsening the financial hardships of vulnerable communities who rely heavily on online trade for survival.
To address the issue comprehensively, the Senate Standing Committee decided to summon FBR officials in the next meeting. Lawmakers expect a detailed explanation of the policy, its objectives, and its potential implications for Pakistan’s budding e-commerce ecosystem. The committee’s intervention reflects growing concerns that premature taxation could derail the digital economy at a time when the country is striving to expand online business opportunities and empower small entrepreneurs.
