The Federal Board of Revenue (FBR), Pakistan’s premier tax authority, has issued a significant tax notice to Netflix, the globally popular streaming service. The notice, aimed at recovering millions of rupees, marks a crucial move in the ongoing efforts to tax digital services operating in Pakistan.
According to reports, the FBR has directed Netflix’s Singapore office to pay Rs200 million in taxes for income generated in Pakistan over the past two years. This notice follows the company’s substantial earnings in the region, with Netflix reportedly making over Rs1 billion in 2021 alone, driven by its large subscriber base in the South Asian country.
Netflix, known for its vast library of TV shows, movies, anime, and documentaries, has seen a surge in popularity in Pakistan. With subscription plans ranging from Rs250 to Rs1,100 per month, it caters to a wide audience, accessible across various devices including smartphones, tablets, Smart TVs, laptops, and streaming gadgets.
The tax notice was issued by the FBR’s Corporate Tax Office in Islamabad. As of now, Netflix has not provided any comments on the matter. This move by the FBR is part of a broader initiative to ensure that foreign companies generating significant revenue within Pakistan are contributing their fair share of taxes.
This tax dispute highlights the growing scrutiny on digital platforms operating in Pakistan, as the government seeks to tap into the digital economy for tax revenues. With the rising popularity of streaming services like Netflix, which serve millions of users across the country, there is an increasing focus on ensuring that these companies comply with local tax laws.
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