Pakistan's ecommerce industry is heading towards a bleak future

[AZADPAKISTAN2009]

Every one pays ONLINE tax !!! If they buy from local seller

Shipment overseas can be asked to pay international customs duty

 

[nahtanbob]

If you don't know how an e-commerce business works, then don't comment on the topic. You clearly have no idea how many countries are giving huge tax incentives for such businesses everywhere while our gov is trying to suck up every penny they can. The biggest example is Amazon which is paying zero corporate tax and they have all the infrastructure to operate without a hitch.

Right now Amazon pays sales tax (or collects it from the customer). For the first decade or so Amazon did not pay sales tax.

I've probably forgotten more about it than you'll know. You think Amazon is an example to follow in terms of taxation? Amazon is a leach. It provides a great platform, it provides some shitty minimum wage jobs, meanwhile it pays little to no tax anywhere it operates. The people who sell on it pay fees as well as taxes.

Why should we give anyone tax exception?


You'll also remember then that everyone paid tax, even the drug dealers. The front businesses used to launder the drug money paid tax.

Drug dealers never paid sales tax. Of course they made it a point to pay off the IRS

 

[Path-Finder]

We don't even have a giant e-commerce retailer which is indigenous. Every foreign big company is sucking money out of our economy.

exactly, if anything the gov is pushing for a more E-commerce based transactions and trade. So this is nonsense. I guess it will be generations before people understand why taxes are important.

 

[blueazure]

That's not how it works. You pay tax for the right to do business. Otherwise you don't do business. Even in ancient times you paid tax to the king regardless of your own status.

weird logic

without any basis .

a conjectured post at best !

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[313ghazi]

weird logic

without any basis .

a conjectured post at best !

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You're right, reading it back it is illogical. The point I was trying to get across is, anywhere in the world, those who do business have to pay taxes on their profits. There is the odd exception, the odd discount, but they are the exception - not the rule.

Amazon sellers pay tax on their profits, online traders on daraz should pay tax on their profits. If people think that paying tax makes their business uneconomical and it's better for them to return to the small market they have access to using cash only - good for them, let them do that. Most people doing business will still be better off even after paying taxes, because e-commerce platforms offer them such a larger marketplace.

I don't think they need to tax free sweetner anymore. Daraz have a vested interest in campaigning for one of course.

 

[blueazure]

You're right, reading it back it is illogical. The point I was trying to get across is, anywhere in the world, those who do business have to pay taxes on their profits. There is the odd exception, the odd discount, but they are the exception - not the rule.

Amazon sellers pay tax on their profits, online traders on daraz should pay tax on their profits. If people think that paying tax makes their business uneconomical and it's better for them to return to the small market they have access to using cash only - good for them, let them do that. Most people doing business will still be better off even after paying taxes, because e-commerce platforms offer them such a larger marketplace.

I don't think they need to tax free sweetner anymore. Daraz have a vested interest in campaigning for one of course.

if one starts paying all the documented book taxes in pakistan , one cannot do business

too much taxation . sales tax = highest in the region


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the other oddity is the govt attitude on tax collection here in pakistan

in 2021 budget, govt proposed 3 % wht on petroleum truckers = the oil tanker association threatened a blockade and the tax proposal was taken back

in this same budget, govt proposed a 5 % gst on wheat mills, = the wheat processing mill association threatened a closure and the tax proposal was taken back


see, the street powerful get away with black mail and extortion , while small trader is co erced to pay ,

dont you think its unfair ?

 

[Bouncer]

https://twitter.com/x/status/1407676233375227906

What is this about?

Poor babies. They are being asked to pay taxes-- @ 2% while rest of the nation pays 17.5%. Too much oppression against these tech gurus. They have brought so much innovation they deserve noble prizes, each of them.

the other oddity is the govt attitude on tax collection here in pakistan

Government needs to get serious about tax collection. No one wants to pay taxes here except the ghareeb awam paying 19.5% GST and 12.5 AIT on phone calls and something like 45% levies on petroleum. This is what is running this country. Other than that you have associations and mafias who block roads whenever anyone wants to talk about taxing them.

see, the street powerful get away with black mail and extortion , while small trader is co erced to pay ,

Problem is that small trader is not so small anymore. People are earning millions per month. Daraz's revenue was expected to touch $ 1 Billion BEFORE the pandemic. And all this sale is coming from these "small traders".

 

[313ghazi]

if one starts paying all the documented book taxes in pakistan , one cannot do business

too much taxation . sales tax = highest in the region


---------

the other oddity is the govt attitude on tax collection here in pakistan

in 2021 budget, govt proposed 3 % wht on petroleum truckers = the oil tanker association threatened a blockade and the tax proposal was taken back

in this same budget, govt proposed a 5 % gst on wheat mills, = the wheat processing mill association threatened a closure and the tax proposal was taken back


see, the street powerful get away with black mail and extortion , while small trader is co erced to pay ,

dont you think its unfair ?

I'm not entirely sure you're first statement is 100% true. Afterall how much tax is there really? Would be interesting to know.

The rest unfortunately is true. The govt is stuck in a taxation quagmire.

The state is run and controlled by the very wealthy and their political clients. These people all use the instruments of the state to avoid taxation and frankly, there isn't much the current government can do about it. Lotas might change party, but they won't turn their backs on their financial interests. You can see his anti corruption drive as an example - long story short NS is enjoying his money in London, thanks to the courts. Malik Riaz got a slap on the wrist and the land mafia in uniform don't even get a mention.

Then we have the people with street power and unions. They use their political sway to avoid taxation too (rightfully of wrongfully) but they get away with it. Which leaves the small to medium business ower, the salaried class and the consumer to get screwed (via indirect taxes).

The state needs more taxes, the people with the most to pay are hiding behind the state, or threatening it to get away with paying and those who are being coerced to pay are in a state of heavy financial stress and can't really afford to pay very much anyway.

We get screwed a little like this in the UK too, where the mega wealthy avoid tax with creative accounting and loop holes setup to favour them thanks to their political friends. The difference here is that cost of living on the most part is not so high that people have to choose between necessities and taxes.

No one wants to pay taxes here except the ghareeb awam paying 19.5% GST and 12.5 AIT on phone calls and something like 45% levies on petroleum.

These are the worst sorts of taxes. They are indiscriminate and contribute towards the higher cost of living for everyone.

 

[AgNoStiC MuSliM]

If you don't know how an e-commerce business works, then don't comment on the topic. You clearly have no idea how many countries are giving huge tax incentives for such businesses everywhere while our gov is trying to suck up every penny they can. The biggest example is Amazon which is paying zero corporate tax and they have all the infrastructure to operate without a hitch.

One of the main reasons Amazon is paying zero taxes is because of tax regulations passed by the Republicans that allowed companies to carry forward losses from previous years, which in turn allowed them to reduce or eliminate their tax bills in years they were profitable. Amazon operated for years at a loss (in the billions) and was able to use those losses in later years to offset their tax bill.

This is not the same thing as the US government 'not taxing ecommerce companies'.