Lawmakers in Pakistan have been auditing the FBR's proposal to include e-commerce in the sales tax net, and only a registered person who files his or her return and also registers for sales tax would be allowed to operate to sell e-commerce. However, lawmakers were more surprised and asked the FBR, "Do you want people not to shop through e-commerce, and can you suggest where these types of conditions apply?" Moreover, lawmakers further asked, "Can the FBR chairperson guide us?" Where did they get these kinds of references from?" The Senate Committee on Finance, while scrutinizing the budget for 2025-2026, suggested changes to the FBR, and they have rejected this proposal. In defense, the FBR chairperson suggested that they introduce a threshold for this. However, lawmakers also said that the FBR is purposely discrediting investments in SME sectors by introducing these kinds of laws and changes.
Moreover, some lawmakers were of the view that people should stop investing in Pakistan and should stop doing business. However, the FBR chairperson replied that these changes were made due to underreporting by the filers, and our hands are tied due to the IMF's strict conditions. Lawmakers said that e-commerce is a growing platform and such taxes will also discredit SME sectors as well. Therefore, such a proposal is hard to accept, and the Senate cannot recommend it. There are independent women as well who earn through e-commerce, and if their income is not enough to file the returns, then how would FBR send those people a notice? That person would be subjected to FBR harassment, which we do not want. However, the FBR chairperson assured those lawmakers that the FBR would create a threshold for websites and businesses to register for sales tax in e-commerce. It is also suggested that tax fraud penalties would be lower, as the FBR's job is to collect taxes, not punish people, as they are not police or judges. Additionally, lawmakers suggested the FBR make laws to encourage the SME sector to grow rather than discrediting it.
