Federal Excise Duty remains applicable on TV, cable TV, newspaper, billboard, and signboard advertisements under the updated Federal Excise Act.
The Federal Board of Revenue (FBR) has officially notified the Federal Excise Duty (FED) rates applicable to various advertisement services for the fiscal year 2026-27, maintaining the taxation framework under the Federal Excise Act, 2005.
According to the updated provisions of the Federal Excise Act, 2005, amended up to June 30, 2026, advertisements broadcast through television channels, cable TV networks, newspapers, periodicals, billboards, poles, signboards, and similar outdoor media platforms will continue to be subject to FED.
The notification outlines a uniform duty structure across major advertising categories. Advertisements aired on closed-circuit television (TV) channels fall under heading/sub-heading number 9802.3000 and are subject to a Federal Excise Duty at the rate of 16 percent of the charges collected for such services.
Similarly, advertisements transmitted through cable TV networks, classified under heading number 9802.5000, will also attract a 16 percent FED on the total charges. The tax applies to advertising services provided through cable operators and related broadcasting platforms.
The FBR has also retained the same duty rate for advertisements published in newspapers and periodicals. These advertisements, excluding classified advertisements, are categorized under heading numbers 9802.4000 and 9802.9000.
Outdoor advertising media, including hoarding boards, poles, signs, and signboards, are covered under the same provisions and remain liable to a 16 percent Federal Excise Duty.
Tax experts believe the continuation of the existing FED structure provides clarity for media houses, advertising agencies, broadcasters, and businesses planning promotional campaigns during the fiscal year.
The standardized duty rate across multiple advertising channels is expected to simplify compliance and tax calculations for stakeholders operating in the advertising industry.
The latest notification confirms that no major changes have been introduced to the Federal Excise Duty rates on advertisement services for FY2026-27.
Businesses utilizing television, print, cable, and outdoor advertising platforms will continue to pay FED at the prescribed rate of 16 percent of the charges, in accordance with the Federal Excise Act, 2005.