The federal government has decided to end the income tax exemption granted to cinemas, reversing a relief measure that was introduced during the 2021-22 fiscal year, sources told ProPakistani.
The exemption was part of a broader effort to support Pakistan’s entertainment industry, which includes cinemas and theaters.
Industry stakeholders had welcomed the relief at the time, as it helped ease operational burdens and encouraged investment in new cinema projects and cultural venues.
With the rollback, income generated by cinemas will now be subject to standard taxation, potentially increasing costs for operators already grappling with rising utility expenses and reduced audience turnout.