An advance withholding tax will be levied on international payments (money sent out of Pakistan) through credit cards, debit cards, and pre-paid cards.
The federal Minister for Finance, Miftah Ismail, said during the presentation of the budget 2022–23 that the tax rate will be different for tax-filers and non-filers. The advance withholding tax rate for filers will be one percent, and two percent for non-filers. It will also be adjustable against the due tax.
There are several services and cards available in Pakistan that are compatible with international payments. Pakistanis send money abroad through multiple channels for a variety of reasons, including online shopping, trade, etc.
What about Netflix payments? Will this additional tax apply on Netflix payments if done via a debit card?
Yes if paid through debit or credit card, then 1% or 2% tax will be charged
But if I’m not wrong this tax is already in practice