KARACHI: The federal government is deciding to amend tax laws to bring foreign brands into the tax net.
According to the officials, a large number of foreign brands are ‘indirectly’ operating in the country through a marketing and distribution network of local dealer.
Regional Tax Office, Karachi has recently detected several cases wherein agents or outlets argued that they were working on behalf of foreign companies and thus were exempted from taxes under the international tax treaties. The official said these local companies have no registration and no sales and income records available with the FBR, despite generating untaxed profits.
“All incomes generated through sales of such brands will be taxed after redefining the law,” an FBR official added.
