According to local media, Netflix, an American over-the-top streaming service that charges subscribers for video on demand, has received a letter from the Federal Board of Revenue (FBR) demanding the recovery of Rs200 million due to income tax.
Thousands of internet-connected devices can access a vast array of award-winning TV series, films, animation, documentaries, and more through the streaming service.
In Pakistan, Netflix offers monthly subscriptions that vary from Rs 250 to Rs 1,100. According to reports, the streaming service made Rs1.3 billion in revenue in Pakistan during the 2021 tax year alone.
The American corporation has received a tax notice from the Additional Commissioner CTO Islamabad, requiring it to pay Rs200 million in taxes over the course of two years.
According to the reports, the warning was delivered to the company’s Singaporean office.