The government has imposed a new tax on users who enjoy movies and dramas on Netflix in Pakistan, now also 3 percent sales tax on IT services for paying the subscription fee by debit card. Will have to give.
According to the details, banks will act as withholding agents to collect additional tax on Netflix. After forcing banks to deduct 13 percent of the provincial sales tax on advertising services last year, the Sindh Revenue Board (SRB) has now imposed an additional tax on Netflix.
According to media reports, 5 percent advance tax on international transactions (filers), and 4 percent card transaction charges in addition to federal excise duty. Advance tax on international transactions is different for non-filers. The advance tax for non-ATL persons will be 10%.Netflix offers 3 different packages to its customers which include mobile package for Rs.250, basic package for Rs.450, standard for Rs.800 and premium for Rs.1100, these prices are exclusive of tax. are
Netflix clarified on its website that depending on where the user lives, they are charged taxes in addition to the subscription price. Under the new Finance Bill 2024, now tech companies are also included in the tax ambit that earn money through digital means in Pakistan.
Last month, FBR sent a notice to streaming giant ‘Netflix’ (Netflix) for recovery of more than 20 crore rupees in income tax. TO) has demanded more than Rs 20 crore for 2 different years from the streaming giant under Section 6 of 2001. Because Netflix announced a revenue of 1.3 billion in Pakistan during fiscal year 2021
