Senate IT Committee opposes FBR’s tax on home-based online sellers, citing risks to small entrepreneurs and flood-hit communities.
The Senate Standing Committee on Information Technology has raised strong objections to the Federal Board of Revenue’s (FBR) move to impose taxes on individuals running online businesses from their homes.
The committee chairperson underscored that thousands of Pakistanis, particularly women and small-scale entrepreneurs, depend on home-based e-commerce to earn a livelihood. She warned that burdening them with taxes could dampen entrepreneurship at a time when communities, especially those devastated by recent floods, require support rather than financial strain.
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A heated debate unfolded during the meeting over whether e-commerce falls under the Ministry of IT or the Ministry of Commerce. The IT Secretary clarified that the new tax applies only to online transactions, not IT services. However, Senator Afnanullah countered, arguing that e-commerce is inseparable from the IT ecosystem and cautioning that such policies risk slowing industry growth.
The committee further stressed the importance of tax exemptions for flood-affected regions. To address the issue, it has called FBR’s officials to its next session to explain the rationale and scope of the e-commerce taxation policy.
