ISLAMABAD: The Federal Board of Revenue (FBR) has said that tax has been imposed on foreign-produced dramas and advertisements to protect the domestic media industry.
The FBR in a circular issued to explain the Finance (Supplementary) Act, 2022, said to encourage domestic media industry, advance tax on foreign produced TV drama serials or plays dubbed in Urdu or any other language shown on local television channels has been introduced through insertion of Section 236C of Income Tax Ordinance, 2001.
The FBR said that tax collected under this section shall be minimum tax. Rates have been introduced through Division XA of Part IV of First Schedule to the Income Tax Ordinance, 2001, adding the rate of tax shall be Rs1,000,000 per episode on foreign produced TV drama serial or play, Rs3,000,000 on foreign produced TV Play (single episode) and the rate of tax shall be Rs500,000 per second on advertisement starring foreign actor. – TLTP