ISLAMABAD – The government of Pakistan has tapped many untouched services to generate taxes, and people in the country have to pay taxes for entertainment like Netflix.
Amid soaring taxes on almost every service, the Sindh Revenue Board (SRB) introduced additional taxes on Netflix, the video-on-demand Internet streaming service, in Pakistan.
As per the latest update, there will be a 3 percent sales tax on IT services, 5% advance tax on international transactions for filers, a 4% card transaction charge, and a federal excise duty when paying Netflix subscription fees using debit or credit cards.
Authorities also mandate that banks and authorized payment processors collect a 3% Sindh sales tax on cloud-based content streaming services like Netflix.
Netflix Taxes Pakistan 2024
| Taxes | Charges |
|---|---|
| Sales Tax on IT services | 3% |
| Advance Tax on international transactions | 5% |
| Card Transaction Charge | 4% |
| Federal Excise Duty | Applicable (No specific rate) |
| Sindh Sales Tax on cloud-based content streaming services | 3% |
In June, FBR issued a notice demanding over Rs200 million in income tax from Netflix, citing that the company generated Rs. 1.3 billion in revenue in Pakistan.
Netflix, which offers a range of subscription plans in Pakistan, operates without physical offices in the country.
