Published : 03 Jun 2025, 01:10 AM
Updated : 21 Aug 2026, 01:21 PM
The proposed budget for the financial year 2025-26 has reduced tax at source for internet services to 5 percent from 10 percent.
In his budget presentation on Monday, Finance Advisor Salehuddin also proposed to reduce the tax on mobile operators turnovers to 1.5 percent from 2 percent.
He mentioned that these changes are aimed at removing discrepancies in the tax structure and expanding the tax coverage under the Finance Ordinance 2025.
Although the budget indicates a slight decrease in the cost of using the internet, the cost of using OTT (over-the-top) platforms is likely to increase. Alongside, determining the definition of such services, the proposed budget aims to impose a 10 percent supplementary duty.
As a result, consumers may have to pay more money on popular OTT platforms to watch dramas, movies or web series.
