The Federal Board of Revenue (FBR) has issued a notice to Netflix, an American subscription video-on-demand over-the-top streaming service, to recover Rs.200 million in income tax, according to local media reports.
Netflix offers a wide array of award-winning TV shows, movies, anime, documentaries, and more across thousands of internet-connected devices. In Pakistan, the streaming service’s subscription plans range from Rs 250 to Rs 1,100 per month. Reports indicate that Netflix earned Rs1.3 billion in Pakistan during the tax year 2021 alone.
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The Additional Commissioner of the Corporate Tax Office (CTO) in Islamabad issued the tax notice, directing the American company to pay Rs.200 million in taxes for two different fiscal years. The notice has been sent to Netflix’s Singapore office, according to the reports.
Data compiled by Visual Capitalist in December 2023 shows that Pakistan has the lowest Netflix subscription rate globally at $2.82 per month. This is followed by Turkiye at $3.38, Argentina at $3.57, Egypt at $3.88, and Nigeria at $4.88 among 244 countries and territories.
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In contrast, Switzerland has the highest Netflix subscription cost at $21.48 per month, $5 higher than the next most expensive country. Wealthy nations like Denmark, Greenland, Ireland, and the United States are also among the top five countries with the highest Netflix subscription costs, with monthly rates ranging from $16.46 to $15.49.
The price differences across countries are influenced by various factors, including economic conditions, market competition, content licensing fees, and currency value fluctuations.