Pakistan Slaps Higher Taxes on Google, YouTube & Facebook – Property & Salary Taxes Also Up

In a major fiscal overhaul, the Federal Board of Revenue (FBR) has proposed significant tax changes targeting multinational digital platforms, salaried individuals, and property transactions, as revealed by FBR Chairman Rashid Langrial during a National Assembly Standing Committee on Finance session.

Digital Tax Hike to Push Local Registrations

The government plans to:

• Increase advance tax on Google, YouTube, and Facebook from 10% to 15%
• Offer a reduced 5% rate for companies that establish local offices

“This initiative aims to encourage these tech giants to set up offices in Pakistan,” Langrial stated.

Revised Income Tax Brackets for Salaried Class

New tax slabs reflect the 10% salary increase for 2024-25:

• 2.5% tax on annual incomes of Rs600,000–Rs1.2 million
• 11% tax for earnings between Rs1.2–Rs2.2 million
• Bank profit tax raised from 15% to 20%

Property Tax Overhaul

Purchase Taxes:

• 1.5% for properties ≤Rs50 million
• 2% for Rs50–100 million
• 2.5% above Rs100 million

Sales Taxes:

• 4.5% for ≤Rs50 million
• 5% for Rs50–100 million
• 5.5% above Rs100 million

Despite IMF objections to lower purchase taxes, the budget introduces a 10% tax credit for buyers of flats and 10-marla houses.

Stricter Cash Transaction Rules

• Rs30,000 penalty for businesses accepting cash payments over Rs200,000
• Aims to reduce undocumented transactions

E-Commerce Tax Framework

• 0% tax for online electronics/electrical goods sellers
• 2% for clothing retailers
• 1% for other categories
• General e-commerce: up to 2% income tax