Govt Imposes Massive Tax on Online Shopping and Cash on Delivery

The government is set to add a new provision to charge tax under section 6A on digitally ordered goods and services as a separate block of income. Previously, there was no specific provision for identifying and taxing transactions of digitally ordered goods and services. Under the provision, the online marketplaces and courier services shall act as “prescribed persons” under section 153 of the Ordinance and be required to deduct tax on payments received by the vendors, on the sale of goods or rendering of services through these platforms. The proposed rates of advance tax deduction are as under: