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Recently Pakistan has introduced a "Digital Proceeds Tax", basically a 5% tax on all online commerce (compared to the 18% sales tax). The US Chamber of Commerc
by abdullahkhalids 1y ago
Recently Pakistan has introduced a "Digital Proceeds Tax", basically a 5% tax on all online commerce (compared to the 18% sales tax).
The US Chamber of Commerce’s US-Pakistan Business Council (USPBC) sent a letter to Pakistan stating [1]
> The proposed tax would be similar to digital services taxes (DSTs) in France and the United Kingdom, which the United States Trade Representative has found to be discriminatory against US companies, inconsistent with established principles of international taxing jurisdiction, and burdensome on US commerce... The act would not only disproportionately harm US companies and American digital exports but also undermine the robust US-Pakistan trading relationship at a critical juncture.
The result of this masked threat is that Pakistan removed the tax for all foreign companies [1].
[1] https://www.dawn.com/news/1927776/digital-proceeds-tax-to-not-apply-on-foreign-goods-and-services-ordered-online-fbr https://www.dawn.com/news/1927776/digital-proceeds-tax-to-no...