FBR’s New Online Seller Tax Policy Faces Challenge

The Federal Board of Revenue (FBR) has come under criticism after introducing a new tax policy targeting individuals who sell products online from home. The move has sparked significant concerns among small business owners, women entrepreneurs, and lawmakers alike.

During a meeting of the Senate Standing Committee on Information Technology, members strongly opposed the decision, warning that the policy could discourage entrepreneurship and negatively impact home-based businesses across Pakistan.

The Committee Chairperson expressed serious reservations regarding the new FBR policy. She emphasized that thousands of Pakistanis, especially women and small-scale entrepreneurs, rely on home-based online selling platforms to support their livelihoods.

She further highlighted that imposing additional taxes at a time when many communities are struggling to recover from recent floods would burden families and limit economic opportunities for those already facing financial hardships.

The FBR’s decision has raised concerns that home-based online sellers, who primarily operate through platforms like Daraz, Facebook, Instagram, and WhatsApp, could face reduced profits due to increased tax obligations.

Key points to note:

• Many women-led businesses operate entirely online from home.

• Small entrepreneurs often rely on digital platforms to avoid the costs of physical stores.

• Imposing new taxes could discourage innovation and reduce income sources for thousands of households.

The committee urged the FBR to reconsider the policy and introduce incentives instead of burdensome taxes to promote digital entrepreneurship in Pakistan.

Pakistan’s e-commerce sector has seen rapid growth in recent years, with thousands of small sellers leveraging online platforms to reach a wider audience. However, experts warn that increased taxation could:

• Slow down digital transformation

• Reduce the competitiveness of Pakistani sellers

• Discourage new startups from entering the market

According to industry analysts, supportive policies are crucial to maintaining the momentum of online business growth and enabling Pakistan’s digital economy to thrive.

The FBR’s new taxation policy targeting home-based online sellers has triggered backlash from lawmakers, entrepreneurs, and industry experts. While the government aims to increase tax revenue, critics argue that such measures could harm small businesses, stifle innovation, and slow down Pakistan’s growing e-commerce sector.

The committee has called for a re-evaluation of the policy to ensure that home-based sellers, especially women entrepreneurs, receive support rather than added challenges.

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