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We live in strange times. Whilst we need Aid, Medicines etc from the global community to battle the crippling effects of climate change & we truly value any ones generosity, we must also use this time to reflect & ask some questions as to why we need Aid
dawn.com
dawn.com
In 2017/18, the assumption was total volume of ad-spend from Pakistan on Google Owned and Meta Owned platforms was 100m$.Fast forward today,its likely grown manyfolds, but lets take 200m$ from Pakistan thats a lot of FX we have sent out
Neither companies are tax residents ofπ΅π°
Neither companies are tax residents ofπ΅π°
blog.chinookstrategy.com
A blog post I wrote in 2018, dont @ me for assumptions, if you or the SBP/FBR have actual date please share and add to the conversation. At least I have the courage to put this in public view.
A blog post I wrote in 2018, dont @ me for assumptions, if you or the SBP/FBR have actual date please share and add to the conversation. At least I have the courage to put this in public view.
What does that mean?
1)Most customers in our markets are long tail,meaning they pay these companies using local credit cards (like vapor ware fx flows out) No sales tax collected by the govt on the payments
2)Enterprise customers wire funds directly to google/fb after sales tax
1)Most customers in our markets are long tail,meaning they pay these companies using local credit cards (like vapor ware fx flows out) No sales tax collected by the govt on the payments
2)Enterprise customers wire funds directly to google/fb after sales tax
3)But neither companies pays income tax in Pakistan. Even if we assume tax treaties existed between their host tax resident country and us, the bulk of the 200m$ FX is run via cards or informal channels.
4)Enter the"greyish channel" A Small media agency or a multi-level globally affiliated agency, buys for a local client,collects PKR. If the ad-buying is large enough they get rebates from the platforms, they park those $ rebates in Dubai(most favored) and settle with their topco
Let me simplify, it's like you asking your cousin to pay Platforms from Dubai & holding the $ rebate in Dubai. Then you figure out a way to make your cousin whole in Pakistan.(wink wink)
Every one knows this has been going on for years, Massive fortunes have been made by locals.
Every one knows this has been going on for years, Massive fortunes have been made by locals.
Let's say for arguments sake 1bn USD was sent to Platforms from PK over 10yrs. If they were in PK & people weren't using cards to make payments bypassing sales tax, we would have collected 10m$ even at 1% sales tax
Thus the flawed logic of 500k$ in aid to greenwash
Thus the flawed logic of 500k$ in aid to greenwash
But before you lash out at me or them, let us understand they arent doing any thing wrong (technically). Because we continue to not demand them to incorporate here and do not shut them down like Indonesia did, they continue to within the remit of the law, operate in greyspace
Oh but instead of blaming the govt of π΅π° if some one had a remedy instead of reading them the riot act????
Oh here you go. Step by step guide to fixing this.
Oh here you go. Step by step guide to fixing this.
Simple advice, before you retweet the good we are getting from platforms(which there is a lot of) we must also be smart enough to understand the underbelly of the capitalist moves that come with it.
The GOP as it struggles to make ends meet, needs to literally copy Indonesia
The GOP as it struggles to make ends meet, needs to literally copy Indonesia
Indonesiaβs government introduced GR 80, 2019 in November 2019 aimed at providing legal guidelines for the countryβs e-commerce industry.
The new law required e-commerce businesses to obtain a business license, report taxes, and uphold consumer protection and rights.
The new law required e-commerce businesses to obtain a business license, report taxes, and uphold consumer protection and rights.
Aid is never the long term solution, good governance, adequate policies and understanding how to set up the right conducive corporate business structures is key to fixing the hole(s) we are in.
Don't get me wrong, Googles AID has come at a time where we need it the most.
Don't get me wrong, Googles AID has come at a time where we need it the most.
What the GOP and Ministry of Finance/IT needs to be asking, is how do we make the operating environment conducive that we attract the right global players and add some balance of power to these lopsided relationships.
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