Spending via online apps: Pakistanis spent over Rs317bn in FY25, NA panel told
According to a presentation ('Digital Presence' Proceeds Levy Act, 2025) given by FBR Chairman Rashid Mahmood to the committee on Saturday, the value of such transactions stood at above Rs 317 billion in 2024-25. Total number of transactions stood at 42,684,264 during this period.
The federal government has introduced the 'Digital Presence' Proceeds Levy Act, 2025, which imposes a new tax on foreign vendors supplying digitally ordered goods and services to consumers in Pakistan. The tax rate has been proposed at 5 percent of the total amount paid.
Mobile apps: SBP issues new guidelines for transaction security
'Foreign vendors providing e-commerce goods of services will be taxed for income tax at 5 percent under the said Act,' the bFBR Chairman said.
The payment intermediaries including banks and financial institutions will collect tax on digital payments made to foreign vendors supplying goods or services into Pakistan.
The committee considered the proposed amendments to The Digital Presence Proceeds Tax Act, 2025. After detailed deliberations, the committee recommended that the Bill may be passed with minor amendments by the National Assembly.
The FBR Chairman informed that the FBR data revealed the spending spree covering a wide array of apps, from social media giants to online shopping websites and streaming services. Leading the charge is Facebook/Meta, with Rs. 12.3 billion in transactions.
Data further revealed that Apple/iTunes saw the highest number of transactions (over 5.1 million), totaling nearly Rs 6 billion.
The data revealed that the Google followed closely with 2.3 million transactions and a transaction value of Rs 5.94 billion. Subsequently, Ali Express made strong spending of Rs 4.9 billion in over 944,466 transactions.
The Temu carried out worth Rs. 1.8 billion transactions whereas number of transactions stood at 376,745 during this period.
Netflix witnessed 3.37 million transactions worth Rs. 2.79 billion.
'Other' online platforms had a total combined number of transactions at 28.6 million, totaling a staggering Rs. 281.4 billion.
The committee considered the proposed amendments to the Islamabad Capital Territory (Tax on Services) Ordinance, 2001. After detailed deliberations, the Committee recommended that the amendments proposed in the Bill may be passed by the Assembly.
The committee examined the proposed amendments to The Income Tax Ordinance, 2001. After detailed deliberations, the committee approved proposed amendments and suggested additional corrections and revisions to several clauses.
Members/MNAs Omer Ayub Khan, Zeb Jaffar, Muhammad Usman Awaisi, Muhammad Jawed Hanif Khan, Dr Mirza Ikhtiar Baig, Dr Nafisa Shah, Sharmila Sahiba Faruque Hashaam, Muhammad Mobeen Arif, Usama Ahmed Mela, Shahram Khan, Shahida Begum, Sami ul Hasan Gilani Ali Zahid besides the Minister of Finance and Revenue, Minister of State, Secretary, Finance, Chairman FBR attended the meeting.
Copyright Business Recorder, 2025
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Express Tribune
2 hours ago
- Express Tribune
Aurangzeboffers talks to avert July 19 strike
The federal government on Monday invited representatives of all trade bodies for talks after Karachi's business community and transporters announced a countrywide wheel-jam strike on July 19 in protest against certain budgetary measures introduced through the Finance Act 2025. Speaking at the Overseas Investors Chamber of Commerce and Industry (OICCI) in Karachi, Finance Minister Muhammad Aurangzeb invited all chambers of commerce and trade associations on Tuesday (today) to discuss their concerns over the Finance Act. The minister's talks offer came after Goods Carrier Association head Malik Shahzad Awan and Karachi Chamber of Commerce and Industry (KCCI) President Javed Bilwani addressed a joint press conference regarding the strike call for July 19. "All transporters will participate in the KCCI's strike on July 19. The wheel jam strike will continue until the KCCI's demands are met. We are also prepared for a longer duration strike," Malik Shahzad Awan told the media persons. The KCCI called the strike against "five key measures" incorporated in the federal budget for the current fiscal year and 32 anomalies in the Finance Act. At the joint press conference, Bilwani made it clear that unless the government put all these measures in abeyance, there would be a strike on July 19. The KCCI opposes Sections 37A and 37B of the Finance Act, which it claims, empowers the FBR with arbitrary arrest powers; Section 21(S), that imposes harsh penalties on cash transactions of Rs200,000 or above; mandatory digital invoicing under SRO 709; and the imposition of E-Bilty under Section 40©. At the OICCI, the finance minister said that he would listen to the position of all the chambers and associations and also explain his position. "All chambers should come after reading the current law. We have put many safeguards in the law against sales tax fraud and other issues," he said. Aurangzeb dismissed the criticism as "propaganda" regarding the enhanced powers granted to the Federal Board of Revenue (FBR), which, he said, aimed to counter large-scale sales tax fraud. He said that the additional powers apply to cases of over Rs50 million tax evasion and not on ordinary businesses. "The new legal tools have been implemented solely to prevent fraudulent activity related to sales tax," Aurangzeb said. "An important meeting with presidents of chambers will be held tomorrow [today]. The government will explain the scope and intent of the FBR's actions to business leaders," he said. Earlier, Biliwani, the KCCI president, insisted on the demand for the immediate withdrawal of the "controversial" Sections of the Finance Act. He also called for the restoration of the Final Tax Regime for exporters. Bilwani revealed that the KCCI was being approached by the Finance Ministry, and while other efforts were being made to resolve the issues through dialogue, but added that there had been no official assurance or notification to suspend the controversial measures. "The KCCI has requested the government to hold these matters in abeyance until a mutually beneficial and constructive solution is found," he said, warning that the strike would "not be postponed until and unless these demands are fully accepted". Responding to a query, Bilwani stressed that the entire business community was fully united and KCCI continued "to receive overwhelming support" from across the country. "More than 50 formal letters have been received from various business associations, reaffirming their solidarity with the KCCI."
Express Tribune
2 hours ago
- Express Tribune
PM directs FBR to set up helpline to assist filers
Prime Minister Shehbaz Sharif on Monday said that expanding the tax base and reducing the burden of taxes on the poor were among the top priorities of the government. He was chairing a meeting to review progress on the digitization of the Federal Board of Revenue (FBR), the implementation of an Artificial Intelligence (AI)-based system, and other reforms. Hailing the availability of simple tax returns in Urdu, the prime minister said a helpline should be established to assist with the process of filing tax returns and digital invoicing should also be launched in Urdu. "In tax reforms, the focus should remain on the convenience of the common man," he added. The prime minister directed that third-party validation be ensured for all FBR reforms to maintain transparency. He stated that for the public's convenience, tax returns have been made extremely easy by making them digital, concise, and linked with a centralized database. He said salaried individuals will benefit the most from the new simplified tax returns. The prime minister instructed that a public awareness campaign should be launched about the ease of tax returns so more and more people can file their returns under the new system. He also instructed that small and medium-sized businesses should be given special support in joining the digital invoicing system. Digital economy Prime Minister Shehbaz Sharif Monday said top priority of the government was to bring transparency in the economy through digitization system. He was chairing the weekly meeting on cashless and digital economy. He said digitization of the payment mechanism from government to people and people to government will create transparency and ease for consumers. He directed that the steps of digitization and cashless economy should be made easier for small and medium entrepreneurs. He said the appointment of the Board of Governors and Chairman of Raast should be completed by September. Experts of economy and business should be included in the Board of Directors of Raast, he added. The prime minister said all State-Owned Enterprises (SOEs) should also be brought under the purview of the digital system. Prime Minister Shehbaz Sharif expressed pleasure over the Pakistan Stock Exchange crossing a historic level of 135,000 points, saying that it reflected the confidence of the business community in Pakistan's economy. The prime minister, in a statement, said that the current positive economic indicators showed the government's policies moving in the right direction. He said that providing a conducive environment to the business community was the government's priority.
Express Tribune
2 hours ago
- Express Tribune
Supreme Court stresses taxpayer dignity in recovery process
The Supreme Court has ruled that the Federal Board of Revenue (FBR) must preserve the dignity of taxpayers while undertaking tax recovery measures. A nine-page judgment authored by Justice Ayesha Malik, dismissing FBR's petition against a high court order, noted that a notice that seeks recovery on the same date as its issuance would defeat the very objective of setting out a date and would render the legal safeguard meaningless. "Yet another aspect that is of significance is the constitutional underpinning of Section 140 of the Ordinance." The ruling observed that the requirement of notice before recovery is not merely statutory but reflects the broader guarantees of due process and fair trial under Article 10A of the Constitution, as well as the right to dignity under Article 14. Courts have consistently upheld that even in fiscal matters, recovery must be carried out in a manner that respects the individual's dignity and legal safeguards. Consequently, even where the law allows coercive recovery, it must be carried out in a way that preserves the dignity of the taxpayer, The judgment was delivered by a three-judge bench of the apex court, led by Justice Munib Akhtar, which examined two core questions: whether an FBR commissioner can demand immediate payment on the same day a notice is issued under Section 140 of the Income Tax Ordinance, or whether the ordinance requires a future date for compliance. FBR's position was that immediate recovery is permissible under Section 140, with no obligation to issue a subsequent notice or provide a specific payment date. However, the judgment held that Section 140 does not permit immediate coercive recovery in the absence of a due date. When interpreted in context, the provision requires that any party holding money on behalf of the taxpayer be issued a notice that clearly specifies a deadline for discharging liability. In his additional note, Justice Shahid Waheed said that a substantial question before the bench was the intersection of tax law and the rights of taxpayers. "In a legal framework that espouses fundamental rightssuch as the right to a fair trial, access to justice, right to dignity, and due process," he noted. He posed a critical question: whether there is any justifiable reason to uphold a culture of authoritative dominance in tax collection? "This inquiry challenges existing norms that often prioritise tax recovery above the rights and protections guaranteed to taxpayers, potentially undermining the very essence of justice. It also invites a thorough examination of the delicate balance that must be upheld between the efficient recovery of tax debts, as mandated by law, and the imperative to protect the rights of those being taxed." Justice Waheed further reflected on the spirit of Sections 137, 138 and 140, likening the ideal recovery process to that of a honeybee: "When delving into the provisions of Sections 137, 138, and 140, it becomes evident that the law prescribes a recovery process that, much like a honey bee gathering nectar from flowers without causing pain to the plant, mandates that taxation officers conduct tax collection and recovery in a manner that ensures: (a) the treatment of taxpayer with dignity and respect, (b) strict adherence to established legal protocols and procedures, and (c) the provision of transparent guidance and explanations to taxpayers." Outlining the procedural journey, he noted: "How is it so? This becomes clearer when we break down the stages involved in the imposition of tax, which consist of three phases. The first phase involves the declaration of tax liability, stating the taxpayer's financial obligations." Subsequently, the second phase encompasses the assessment process, detailing the exact sum that the taxpayer is legally obligated to pay. "Finally, if the taxpayer fails to fulfil this obligation voluntarily, the third phase introduces the recovery methods to be employed." Underscoring the primacy of dignity, he stressed: "The right to dignity is the most central of all fundamental rights, as it is the source from which all other rights are derived. The Ordinance aims to strike a balance between ensuring tax recovery and upholding taxpayer dignity. The recovery process executed in these cases disregarded this balance."
