Punjab Revenue Authority has sent notices to regional offices of Google in Pakistan at Arfa Software Technology Park, Lahore and Facebook at Palo Alto to recover service taxes on their advertising campaigns for local businesses in Pakistan. Reportedly, both Facebook and Google are not registered with Punjab Revenue Authority for the filing of taxes.
Government of Pakistan announced sales taxes on online advertising in the year 2013. According to PRA, Google and Facebook are providing online advertising services to thousand of companies in Punjab and hence, they ought to pay the service taxes for the work they have been offering in the province.
There is no word from Google and Facebook on this development. We will update this space as soon as there is a progress.
Source – City42
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