Pakistan’s entertainment industry has long faced stiff competition from foreign TV dramas, dubbed serials, and advertisements featuring international actors. The growing presence of foreign content on local TV channels often discourages investment in local talent, writers, producers, and actors.
To address this imbalance, the Federal Board of Revenue (FBR) uses the tax framework as a regulatory tool to promote local entertainment and discourage excessive reliance on foreign productions.
🎬 FBR’s Tax Policy to Support Local Content
Under Section 236CA of the Income Tax Ordinance, 2001 (updated for tax year 2026), FBR imposes advance income tax on:
• Foreign-produced TV drama serials
• Foreign TV plays (including dubbed content)
• Advertisements starring foreign actors
This tax policy increases the cost of airing foreign content, making locally produced entertainment more competitive and attractive for broadcasters.
📜 What Does Section 236CA Say?
According to the law:
✅ Tax Collection Authority
Any licensing authority certifying foreign TV content or advertisements for screening on landing rights channels is required to collect advance tax.
✅ Minimum Tax Rule
The tax collected under this section is treated as minimum tax, meaning:
• No adjustment or refund is allowed
• Tax liability is considered fully discharged for that income
💰 Tax Rates on Foreign Entertainment Content (2026)
| Type of Content | Advance Tax Rate |
| Foreign-produced TV drama serial | Rs1,000,000 per episode |
| Foreign-produced TV play (single episode) | Rs3,000,000 |
| Advertisement starring a foreign actor | Rs100,000 per second |
🎯 How This Tax Promotes Local Entertainment
This taxation mechanism serves multiple purposes:
✔ Discourages excessive import of foreign content
✔ Encourages TV channels to invest in Pakistani dramas and actors
✔ Creates a level playing field for local producers
✔ Supports cultural identity and domestic creative talent
✔ Generates revenue without burdening local creators
❓ Frequently Asked Questions (FAQs)
🔹 Does this tax apply to Pakistani dramas?
No. The tax applies only to foreign-produced content and advertisements featuring foreign actors.
🔹 Is dubbed foreign content also taxable?
Yes. Foreign dramas dubbed in Urdu or any other language fall under this section.
🔹 Is the tax adjustable?
No. The tax is treated as minimum tax and cannot be adjusted against other liabilities.
🔹 Who collects the tax?
The licensing authority certifying the content is responsible for collecting the tax.
📌 Final Thoughts
Through Section 236CA, FBR uses fiscal policy not just as a revenue tool but as a strategic measure to protect and promote Pakistan’s local entertainment industry. By increasing the cost of foreign content, the policy incentivizes broadcasters to support local talent, storytelling, and cultural representation.
👉 Tip: Media houses and advertisers should carefully evaluate the tax impact before importing foreign content in 2026.
Disclaimer: This article is published for informational and educational purposes only. It does not constitute legal, tax, or professional advice. Tax laws, rates, and interpretations are subject to change and may vary based on specific circumstances. Readers are advised to consult the Federal Board of Revenue (FBR), relevant statutory provisions, or a qualified tax professional before making any business or compliance decisions.