Advance tax on cable operators abolished

ISLAMABAD: The government has abolished advance tax on cable operators and other electronic media that was collected under Income Tax Ordinance, 2001.

Through Finance Act, 2020 the Section 236F of the Income Tax Ordinance, 2001 has been deleted.

The Section 236F was related to advance tax on cable operators and other electronic media, officials at Federal Board of Revenue (FBR) said on Thursday.

After the deletion of the section the advance tax under this has no more required to be collected from July 01, 2020.

The omitted section was as:

236F. Advance tax on cable operators and other electronic media.— (1) Pakistan Electronic Media Regulatory Authority, at the time of issuance of licence for distribution services or renewal of the licence to a licencee, shall collect advance tax at the rates specified in Division XIII of Part IV of the First Schedule.

(2) The tax collected under sub-section (1) shall be adjustable.

(3) For the purpose of this section, “cable television operator” “DTH”, “Distribution Service”, “electronic media”, “IPTV”, “loop holder”, “MMDS”, “mobile TV”, shall have the same meanings as defined in Pakistan Electronic Media Regulatory Authority Ordinance, 2002 (XIII of 2002) and rules made thereunder.

Division XIII of Part IV of the First Schedule

1) The rate of tax to be collected under section 236F in the case of Cable Television Operator shall be as follows:—

(License Category as provided in PEMRA RulesTax on License FeeTax on Renewal
HRs. 7,500Rs. 10,000
H-IRs. 10,000Rs. 15,000
H-IIRs. 25,000Rs. 30,000
RRs. 5,000Rs. 12,000
BRs. 5,000Rs. 40,000
B-1Rs. 30,000Rs. 35,000
B-2Rs. 40,000Rs. 45,000
B-3Rs. 50,000Rs. 75,000
B-4Rs. 75,000Rs. 100,000
B-5Rs. 87,500Rs. 150,000
B-6Rs. 175,000Rs. 200,000
B-7Rs. 262,500Rs. 300,000
B-8Rs. 437,500Rs. 500,000
B-9Rs. 700,000Rs. 800,000
B-10Rs. 875,500Rs. 900,000

(2) The rate of tax to be collected by Pakistan Electronic Media Regulatory Authority under section 236F in the case of IPTV, FM Radio, MMDS, Mobile TV, Mobile Audio, Satellite TV Channel and Landing Rights, shall be 20 per cent of the permission fee or renewal fee, as the case may be.]

“(3) In addition to tax collected under paragraph (2) Pakistan Electronic Media Regulatory Authority shall collect tax at the rate of fifty per cent of the permission fee or renewal fee, as the case may be, from every TV Channel on which foreign TV drama serial or a play in any language, other than English, is screened or viewed.”

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