Netflix
In a significant move, the Federal Board of Revenue (FBR) has issued a notice to Netflix, the American subscription video on-demand over-the-top streaming service, to recover Rs200 million in income tax, as reported by local media.
Netflix, renowned for its extensive library of award-winning TV shows, movies, anime, documentaries, and more, is accessible on thousands of internet-connected devices. In Pakistan, Netflix offers subscription plans ranging from Rs 250 to Rs 1,100 per month. According to reports, the streaming giant earned Rs1.3 billion by providing its services in Pakistan during the tax year 2021 alone.
The tax notice was issued by the Additional Commissioner of the Corporate Tax Office (CTO) Islamabad, directing Netflix to pay Rs200 million in taxes for two different years. This step by the FBR highlights the increasing focus on ensuring tax compliance among digital service providers operating within the country.
As digital services continue to grow in popularity, regulatory bodies like the FBR are taking necessary measures to ensure these companies meet their tax obligations, contributing to the country’s revenue.
