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PRA vows to bring foreign companies, service providers under tax net

PRA vows to bring foreign companies, service providers under tax net

LAHORE: Punjab Revenue Authority (PRA) Chairman Zain Ul Abidin Sahi has said that local and foreign companies such as Google and Netflix which are providing services in Pakistan will soon be brought under the tax net and the authority is working on devising a suitable mechanism for it.

The PRA chairman said this while addressing a meeting with the Journalists Association (LEJA) at the PRA office.

“The local or foreign companies that are providing services in Pakistan, whether they have an office here or not, will have to pay taxes and procedures are being worked out for this,” he said.

The chairman informed that the target of Rs155 billion tax revenue would be easily achieved during the current fiscal year. He further said that during the first six months of the current fiscal year Rs72 billion has been collected whereas during the same period last year, only Rs58 billion was collected.

“By December 2021, the number of taxpayers has exceeded 100,000 while PRA has experienced a 22 per cent growth in tax collection. During the Covid-19 pandemic, the tax rate was reduced from 16 per cent to 5 per cent, and despite the reduction in the tax rate, revenue increased. The PRA office has conducted more than 300 capacity building workshops for traders and industrialists,” he said.