The Government to Double Tax on Offshore Digital Services, Ensured Stricter Fraud Penalties

ISLAMABAD: The federal government is arranging significant modifications to the Tax Laws Amendment Bill 2024. These progressions propose a 20% income tax on foreign online services, a possible 10-year imprisonment for sales tax fraud and enhanced powers for junior revenue officials to capture suspects without requiring earlier approval.
The income tax rate on charges for abroad digital services will ascend from 10% to 20%, affecting services like online advertising, website maintenance, e-commerce, and email marketing aimed at users in Pakistan.
Offenders can confront fines of up to Rs. 10 million and jail terms of as long as 10 years if tax fraud is found to have occurred. Tax fraud would include underreporting taxes, falsifying bills, and overstating refunds. The government has suggested a new meaning of “abettor” to include anyone who helps or plans tax fraud. They would face the same penalties as those committing tax fraud.
Junior FBR police can capture suspects in in tax cases without requesting consent first, for however long there is an investigation after the arrest. Moreover, FBR agents investigating tax fraud might request to have the subject added to the Exit Control List (ECL) to prevent them from leaving the country.
Further restrictions on non-filers are likely. Non-filers can’t buy homes and cars, and the new changes recommend they additionally will not have the option to buy farm tractors.
Today, the Tax Laws Amendment Bill 2024l 2024 is set to be talked about by the National Assembly Standing Committee on Finance