Tuesday, July 23, 2024
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New Netflix Subscription Taxes have Been Imposed by Banks in Pakistan

The government of Pakistan has chosen to impose several additional tariffs on Netflix, with 13% of the provincial sales tax now required to be deducted by banks in Pakistan from advertising services using Netflix. This means that Netflix will be subject to provincial taxes on promoting its offerings.

A 3% sales tax is now applicable on Netflix subscription payments made by customers using debit or credit cards in Pakistan. As a result of this new tax, Netflix subscribers in Pakistan will have to pay some extra money when renewing their subscription.

In addition, overseas transactions are subject to advance tax. This means that there is an additional tax that Pakistanis have to pay when they do business with foreign businesses like Netflix. The tax rate for filers is five percent. The rate is 10% higher for non-filers.

In addition to these taxes, there is a federal excise duty and a 4 percent card transaction fee. The Sindh Revenue Board, which oversees the administration of these new tax regulations, will be in charge of collecting all these taxes.

The Federal Board of Revenue (FBR) sent a notification to Netflix requesting that the corporation pay 200 million Pakistani rupees in taxes for the last two years. This new tax plan is the result of this notice. Netflix generated revenue of over one billion Pakistani rupees in the country in 2021, which served as the basis for FBR’s demand.

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