Mini-budget: income tax rates proposed for foreign TV dramas

Mini-budget: income tax rates proposed for foreign TV dramas

ISLAMABAD: The government on Thursday presented a mini-budget and introduced income tax rates for foreign produced TV dramas.

The changes have been proposed through the Finance (Supplementary) Bill, 2021 presented before the parliament. Sources in the Federal Board of Revenue (FBR) said that the imposition of tax on foreign TV dramas would general sizeable revenue.

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The proposed advance tax rates on foreign TV serials, dramas and advertise are:

— On foreign-produced TV serials @ Rs.1 million per episode

— On foreign-produced TV dramas @ Rs.3 million per production

— On advertisement starring foreign actors @ Rs.0.5 million per second

READ MORE: Tax exemptions worth Rs343 billion withdrawn through mini-budget

In order to apply the tax rates, a new Section 236CA to Income Tax Ordinance, 2001 has been proposed through Finance (Supplementary) Bill, 2021.

Following is the text of the proposed section:

“236CA. Advance tax on TV plays and advertisements. – (1) Any licensing authority certifying any foreign TV drama serial or a play dubbed in Urdu or any other language, for screening and viewing on any landing rights channel, shall collect advance tax at the rates specified in Division XA of Part IV of the First Schedule.

READ MORE: Text of Finance (Supplementary) Bill, 2021

(2) Any licensing authority certifying any commercial for advertisement starring foreign actor, for screening and viewing on any landing rights channel shall collect advance tax at the rates specified in Division XA of Part IV of the First Schedule.

(3) The tax required to be collected under this section shall be minimum tax in respect of income arising from such drama serial or play or advertisement referred to in sub-section (1) or (2) of this section.”

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