‘Sans par bhi tax ley lein,’ Sindh to tax Netflix subscriptions

If you’re a Netflix user in Pakistan, get ready to pay more for the streaming service. The Sindh Revenue Board (SRB) has added new taxes to your subscription fees.
Starting now, Netflix users will have to pay a 3% sales tax on IT services. Additionally, if you’re making an international transaction to pay for your subscription and you’re a tax filer, there’s a five percent advance tax. On top of that, there’s a four percent card transaction charge when using debit or credit cards, plus a federal excise duty.

Out of all the over-the-top (OTT) streaming services, Netflix continues to be the most well-known. It offers highly regarded TV series, films, documentaries, and other original material in various genres.
The platform allows viewers to stream content on-demand over the internet to a variety of devices, including PCs, mobile phones, tablets, TVs, and consoles. While Pakistanis consume a lot of free content, many are happily paying for premium OTT services like Netflix.

Recently, a new Finance Bill was introduced in 2024 that imposes tax on tech companies like Netflix that earn income in Pakistan through digital means and presence, even without a physical establishment.
Last month The Federal Board of Revenue (FBR) has served a notice to Netflix for recovery of over Rs. 200 million in income tax.
Effective immediately, subscribers will see additional charges on their Netflix subscriptions. Here’s how the new taxes will affect the current subscription rates:

Mobile Plan: PKR 250
Basic Plan: PKR 450
Standard Plan: PKR 800
Premium Plan: PKR 1,100

Here are the Netflix subscription plans and their rates in Pakistan after the new taxes:

Mobile Plan: PKR 324.80
Basic Plan: PKR 584.64
Standard Plan: PKR 1,039.36
Premium Plan: PKR 1,429.12

These new taxes are part of the government’s efforts to generate more revenue from digital services. So, the next time you settle down for a Netflix binge, be prepared for these extra charges on your bill.
This new taxes significantly increase the total cost of Netflix subscriptions in Pakistan. This is something users need to be aware of when budgeting for their monthly entertainment expenses.