Latest news with #Daraz
Business Recorder
2 days ago
- Business
- Business Recorder
Ministers propose eCommerce tax reforms
In a bid to support Pakistan's rapidly growing eCommerce sector and support small and medium enterprises (SMEs), Federal Minister for Commerce Jam Kamal Khan and Federal Minister for IT and Telecommunication Shaza Fatima Khawaja have proposed key revisions to the government's taxation and regulatory framework. The development came during a high-level meeting held to address key issues in eCommerce sector, read a statement released by the Ministry of Commerce on Thursday. 'In line with the consultative approach of the forthcoming policy, Minister of Commerce Kamal Khan announced the formation of a joint working group, with input from the IT Ministry, to gather comprehensive recommendations on taxation, vendor compliance, and digital payments,' read the statement. Is the budget changing how government views e-commerce? The group's findings will be formally presented to Prime Minister Shehbaz Sharif for final consideration. The federal government, in its budget presentation for fiscal year 2025-26 on Tuesday, announced a 5% withholding levy on payments made to domestic and international digital vendors (e.g., Amazon, Google, Facebook, Netflix, Daraz, Temu, PakWheels) for goods or services delivered to Pakistani consumers. Moreover, an 18% standard VAT is being proposed for online marketplaces facilitating the sale of both goods and services (e.g., Daraz, OLX, Zameen, PakWheels), which aims to standardise tax treatment and close revenue gaps—especially for platforms acting as intermediaries. Meanwhile, during the meeting on Thursday, Kamal confirmed that eCommerce Policy 2.0 is in its final stages of internal review and will soon be submitted for cabinet approval. Pakistan's eCommerce sector has witnessed rapid growth, reaching a market size of $7.7 billion in 2024, with projections estimating a 17% compound annual growth rate through 2027. The ministers reiterated their commitment to fostering an inclusive, competitive, and digitally empowered trade ecosystem, and arising issues faced shall be addressed at the highest level.
Business Recorder
4 days ago
- Business
- Business Recorder
Taxing the digital frontier: Pakistan's bold move to tap e-commerce and online revenues
In a landmark shift to modernize tax collection and close long-standing loopholes, Pakistan's 2025–26 federal budget introduces the Digital Presence Proceeds Tax Act, 2025 – a targeted move to tax revenues generated by foreign digital platforms and online vendors operating in Pakistan without a physical presence. Part of this act is the digital transactions proceeds levy - a 5% withholding levy that will be applied to payments made to domestic and international digital vendors (e.g., Amazon, Google, Facebook, Netflix, Daraz, Temu, PakWheels) for goods or services delivered to Pakistani consumers. The levy will apply to both physical and digital goods/services, including streaming, cloud computing, e‑learning, consultancy, online banking, architectural design, and other digitally delivered services As per earlier reports, banks, fintech firms, and payment gateways are mandated to deduct the 5% at source when money is transferred to vendors, and must report these deductions quarterly to the FBR. Platforms qualify for the levy if they generate more than Rs 1 million annually from Pakistani users, or have a 'significant digital footprint'. Separately, a new standard VAT is being proposed for online marketplaces facilitating the sale of both goods and services (e.g., Daraz, OLX, Zameen, PakWheels) which aims to standardize tax treatment and close revenue gaps—especially for platforms acting as intermediaries. This will be collected by the logistics firms delivering the goods. A key part of the budget is its focus on e-commerce platforms using cash-on-delivery (COD), a popular but loosely regulated channel. Foreign vendors relying on COD logistics to reach Pakistani buyers will no longer remain invisible to tax authorities. Their proceeds will now be within the tax net, aligning their obligations with those of domestic businesses. The budget also introduces enforcement mechanisms such as track-and-trace systems, barcodes, and tax stamps to ensure compliance. By leveraging technology and data, the FBR aims to build capacity to monitor digital transactions and enforce this new regime effectively. Significance of the law The new law marks a critical step toward recognizing the realities of the modern economy, where global tech giants and cross-border sellers reap substantial revenues from Pakistani consumers but contribute little to the national tax base. By establishing 'digital presence' as a taxable nexus, the government aims to impose a Digital Services Tax (DST) on companies earning income through digital channels – be it through apps, marketplaces, streaming services, or cloud-based software. In a global context, Pakistan joins countries like India, the UK, and members of the EU that have already implemented digital taxation policies to claim their fair share from the borderless digital economy. While the OECD continues to negotiate a unified global tax framework, unilateral measures like this are increasingly seen as essential tools for emerging economies struggling with revenue shortfalls. However, the law's success will depend on the implementation capacity of tax authorities, coordination with financial and logistics intermediaries, and the willingness of global platforms to comply – or face potential restrictions.
Time Business News
24-05-2025
- Business
- Time Business News
Business Trends in Modern Days: What's Driving Success
The modern business landscape is evolving faster than ever before. With technological advancements, changing consumer behaviors, and global socio-economic shifts, businesses must adapt quickly to survive and thrive. Today's business trends reflect a dynamic shift towards digitalization, sustainability, customer-centric models, and innovation. This article explores the most significant business trends shaping the modern world and what they mean for entrepreneurs, startups, and large corporations. One of the most prominent trends in modern business is digital transformation. Companies of all sizes are embracing technology to streamline operations, enhance customer experiences, and increase efficiency. Whether using cloud-based platforms, AI-powered tools, or automation software, digital investment platforms that support smarter decisions are now a key part of every successful business strategy. Even traditional industries like manufacturing, retail, and agriculture are adopting digital technologies. Businesses use data analytics to make informed decisions, improve supply chains, and predict consumer behavior. This data-driven approach also influences stock investment strategies, as investors closely watch how companies utilize technology to stay competitive. Companies that fail to adapt to this digital shift risk falling behind their tech-savvy competitors. The rise of e-commerce is another defining trend of modern business. More consumers prefer shopping online, thanks to the convenience, variety, and often better prices. This has led to a massive surge in online retail platforms like Amazon, Shopify, and regional players like Daraz or Flipkart. It has also influenced stock market tools that track retail industry growth to gain popularity among investors. Businesses also offer more services online, from education to healthcare to financial services. The COVID-19 pandemic accelerated this trend and is now a permanent part of companies' operations. Even local stores invest in digital presence through websites, apps, and social media to reach customers. As a result, publicly traded e-commerce companies are increasingly seen as attractive assets on global stock exchanges. Remote work was once seen as a perk; now it's the norm. Many companies have shifted to hybrid models where employees work partly from home and partly from the office. This trend is cost-effective for businesses and offers flexibility and improved work-life balance for employees. Modern companies invest in collaboration tools like Zoom, Slack, and Microsoft Teams to keep their teams connected. As these tools become essential business utilities, their parent companies often see reflected value in stock market performance. Businesses are also rethinking office spaces, focusing more on shared spaces, flexible hours, and results-based performance evaluations rather than fixed attendance. Artificial Intelligence and automation are no longer futuristic ideas—they are realities transforming business operations across industries. From chatbots handling customer service inquiries to AI-powered analytics providing deep insights into market trends, businesses are becoming more innovative and efficient. Robotic Process Automation (RPA) is used in finance, HR, and supply chain management to automate repetitive tasks. AI also plays a crucial role in marketing by helping businesses personalize ads, content, and user experiences based on consumer behavior. As AI adoption grows, companies pioneering these technologies are gaining strong investor interest, often resulting in rising stock valuations. Today's consumers are interested in what a product does and care about how it's made. Sustainability, ethical sourcing, and social responsibility have become essential business considerations. Companies are being judged not just on profit, but also on their environmental and social impact. From using eco-friendly materials to adopting green energy solutions and reducing carbon footprints, modern businesses are integrating sustainability into their core values. Public companies with strong Environmental, Social, and Governance (ESG) ratings often experience a boost in investor confidence, as sustainable investing continues to grow globally. Brands like Patagonia and Tesla have built strong identities around environmental responsibility, influencing others to follow suit. Subscription-based models are taking over various industries, from streaming platforms like Netflix and Spotify to meal kits, fitness apps, and even software products. Customers prefer paying a predictable monthly fee for ongoing value rather than making one-time purchases. This model benefits businesses by creating consistent revenue streams, enhancing customer retention, and enabling ongoing engagement. SaaS (Software as a Service) companies especially thrive on this model, offering updates and support as part of the package. These consistent revenue flows also attract long-term investors, making subscription-based companies a frequent highlight in stock portfolios. Customers today expect personalized experiences. Whether receiving product recommendations, emails tailored to their interests, or targeted ads, personalization is crucial to customer engagement and retention. Businesses leverage big data and machine learning to gather insights into customer behavior and deliver relevant content and products. Brands that invest in personalization see higher conversion rates, better customer loyalty, and improved customer satisfaction. Investors watch such companies, as personalized user experiences often translate into higher earnings and stronger stock performance. As businesses go digital, cybersecurity has become a significant concern. Cyber threats, data breaches, and online fraud are increasingly common, making it essential for companies to protect their data and customer information. Modern businesses invest in advanced security systems, employee training, and secure infrastructure. Regulations like GDPR and other data protection laws push companies to become more transparent and responsible in handling user data. The increased demand for cybersecurity has led to notable growth in the cybersecurity sector, with many related stocks becoming favorites among institutional and retail investors. Social media platforms like Instagram, TikTok, LinkedIn, and YouTube have become essential marketing tools. Businesses use these advertising platforms to build brand communities, get real-time feedback, and engage with their audience. Influencer marketing is another fast-growing trend. Collaborating with influencers helps brands reach niche markets, build trust, and generate authentic content. Micro-influencers, with smaller but highly engaged audiences, are particularly effective for targeted campaigns. As marketing budgets shift toward digital-first strategies, companies leading in influencer platforms are gaining favor in the stock market. The modern business world is seeing a boom in entrepreneurship. With access to digital tools, funding platforms, and global markets, starting a business is easier than ever. People are turning their passions into profitable ventures, and startups lead innovation across sectors. Incubators, accelerators, and venture capital firms support young businesses, especially in tech, health, and green industries. Governments in many countries also offer grants and training programs to promote entrepreneurship and job creation. As startups scale, many move toward IPOs (Initial Public Offerings), attracting interest from retail and institutional stock investors looking for the next big success story. The business trends of modern days are defined by technology, sustainability, and customer empowerment. As the world becomes more connected and competitive, businesses must remain agile, innovative, and socially responsible to stay relevant. Embracing digital transformation, investing in talent, and listening to consumers are essential to long-term success. Whether you're a seasoned entrepreneur or just starting, understanding these trends can help you make better decisions and build a thriving business in the modern era. Recognizing these shifts early can also provide valuable stock market opportunities for investors. TIME BUSINESS NEWS
