Last year, the Sindh Revenue Board (SRB) in Pakistan required banks to deduct a 13 percent provincial sales tax on advertisement services. Now, they have introduced additional taxes on Netflix.
As a result, banks are charging Netflix users various taxes and fees. When paying for Netflix subscriptions with debit or credit cards, users are subjected to a 3 percent Sales Tax on IT Services. Additionally, there is a 5 percent Advance Tax on International Transactions for those who are tax filers. On top of that, card transaction charges are set at 4 percent, plus a Federal Excise Duty.
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For non-filers of tax, the advance tax on international transactions is higher, set at 10 percent.
Netflix mentions on its website that users may be charged taxes in addition to their subscription price, depending on their location.
In summary, Netflix users in Pakistan now face several additional charges when paying for their subscriptions.
