Latest news with #PakWheels
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.
Gulf Today
18-03-2025
- Entertainment
- Gulf Today
‘Pathan Elon Musk' sends netizens in Pakistan into a spin
No matter what you say, there seems to be always someone existing somewhere in the world who looks just like you. There are commoners who are doppelgangers or lookalikes of the rich and the famous. Here is an interesting example. A Pakistani youngster has driven netizens into a tizzy for his striking resemblance to the eccentric billionaire Elon Musk, albeit a much younger version. A video of him dining with friends is doing the rounds on social media. It was posted on X with the caption, "Look at this, doppelganger of Elon Musk is KPK, Pakistan. Elon Musk Khan Yousafzai.' Fancy titles The video shows the youth having rice while one of his friends jokingly calls him 'Elon Musk' in Pashto. According to reports in sections of the Indian meida, netizens have given him such fancy monikers as 'Pakistani Elon Musk' and 'Elon Khan'. This has led to a whirlwind of witty remarks and memes. Some users said in a tongue-in-cheek comment that Elon Musk may have a long-lost twin. Others called for a face-to-face interaction between the real Elon Musk and his Pakistani lookalike. 'Pakistan woh wahid mulk hai jider har celebrity ka twin nikal ata hai (Pakistan is a unique country where every celebrity has a twin),' wrote one user. 'Elon musk b Pakistan me hai Donald trump b yahan hai tu America Kon Chala Raha hai (Elon Musk is in Pakistan, Donald Trump is here too, so who's running America?),' quipped another. 'Pathano ka Elon Musk,' wrote another. AI-generated? But he is not the first facial copy of Musk in the South Asian country. Earlier, photos of another Pakistani lookalike of the tech baron were circulating on the worldwide web. However, thanks to the all-pervasive effect of artificial intelligence, the doubting Thomases followed the argument of Shakespeare in 'Julius Caesar'. They said that like Caesar's wife, the lookalike was not above suspicion. They thought he was not real, but AI-generated! Social media earlier celebrated Yi Long Musk, the Chinese Elon Musk lookalike. Reddit watchers went into a spin. 'Man, the Chinese really can counterfeit anything,' commented one Reddit user. This is not the only Elon Musk-related content creating a commotion in Pakistan. Another video has surfaced showing a locally built Cybertruck ambling through the streets of an unidentified city. At first sight, the vehicle looks strikingly close to Tesla's futuristic Cybertruck, with its unique design. However, as it moves, the mask falls, showing a local, custom-built vehicle. The video was shared on the Instagram account 'PakWheels', with the legend: 'Elon Musk wants to know his location! Tesla Cybertruck spotted in Pakistan in an anonymous city. Tag him in comments if you know him.'
