ISLAMABAD - The government is in a fix after social networking giant Facebook has declined to pay any sales tax to the Punjab Revenue Authority (PRA). The authority had asked the networking site to pay sales tax.

According to the officials, the Punjab government will now pursue through the Pakistan Telecommunication authority (PTA).

This unusual situation surfaced when the PRA sent notices to Facebook, Google, Dailymotion and YouTube about two months ago, asking them to get their online advertisement business registered with the Authority in the Punjab province of Pakistan. After around three weeks, only Facebook responded.

The networking website in its reply told the Punjab Revenue Authority (PRA) that it did not need any kind of registration with the Authority to pay sales tax as it was operating from outside Pakistan.

It said that as the company was not taxable in Pakistan so the rules of Punjab government do not apply to it.

The company is providing online services from Ireland.

The PRA in its website claimed that so far it has registered over 200 local businesses compulsorily in the Punjab. It further said that after registering these companies, they would be able to ask the IT and Telecom regulator, Pakistan Telecommunication Authority (PTA), to take action against the tax-evading websites companies.

When asked Facebook about the case, the automated reply said that media team will get back in due course of time.