Tax on Card Payments Abroad in Pakistan Is Now 0.5%, Not 5%: Check Your Statement
FBR lists advance tax on card payments abroad at 0.5% for ATL filers and 1% for others, down from 5% and 10%. How to check what your bank deducted and complain.
FBR's withholding tax rate card for tax year 2027 lists the advance tax on card payments abroad at 0.5% for people on the Active Taxpayers List (ATL) and 1% for everyone else. The year before, the same tax was 5% and 10%. Tax year 2027 runs from 1 July 2026 to 30 June 2027.
That is a tenfold cut. Yet when we checked on 9 October 2026, Meezan Bank's debit card page and SadaPay's schedule of charges still showed 5% for filers and 10% for non-filers. So it is worth checking what is being taken from your own statement.
The tax applies to money paid abroad with a credit, debit or prepaid card. That covers Netflix, Spotify, Steam, Google Play bought in dollars, foreign shopping websites and card spending on a trip abroad.
FBR lists 0.5% for ATL filers and 1% for others
Section 236Y of the Income Tax Ordinance collects advance tax on amounts "remitted abroad through credit, debit or prepaid cards". FBR's current rate card puts it at 0.5% if you are on the ATL and 1% if you are not. The previous card showed 5% and 10%.
We read both versions on FBR's own website. The rate card for tax year 2027 says it is "updated up to June 30, 2026 as per Finance Act, 2026". Both its PDF and its spreadsheet show 0.50% and 1.00% for section 236Y. The rate card for tax year 2026, updated to 30 June 2025, shows 5.00% and 10.00% for the same line.
| Tax year | Period | ATL rate | Non-ATL rate |
|---|---|---|---|
| 2026 | 1 July 2025 to 30 June 2026 | 5% | 10% |
| 2027 | 1 July 2026 to 30 June 2027 | 0.5% | 1% |
"ATL" means the Active Taxpayers List. A person on it is usually called a filer. Being registered with FBR is not enough on its own: your name must be on the list. You can check your filer status with one SMS before you work out which rate should apply to you.
Some bank and wallet pages still quote 5% and 10%
Meezan Bank's Visa debit card page and SadaPay's July to December 2026 schedule of charges both still say advance tax on international transactions is 5% for filers and 10% for non-filers. Neither page mentions the lower rate on FBR's current card.
A page that has not been updated does not prove that the old rate is being charged. Banks often update their systems before their web pages. But it does mean you should not trust the fee page alone. Your statement is the only place that shows what was actually taken.
If your statement shows tax at 5% or 10% on a payment made after 1 July 2026, ask your bank to explain it in writing. Quote section 236Y and FBR's rate card for tax year 2027.
How to check the tax on your own statement
Open your bank or wallet statement, find a recent foreign card payment, and look for a separate line marked tax, WHT or 236Y next to it. Divide that tax by the payment amount. About 0.5% or 1% matches FBR's current card. About 5% or 10% does not.
- Get your statement. Download it from your app or internet banking, or ask the branch. Our steps to get a bank statement online cover the main banks.
- Find a foreign card payment. Pick one made after 1 July 2026, such as a subscription or an online order.
- Find the tax line. Look for an entry on the same day labelled WHT, advance tax, 236Y or tax on international transaction.
- Work out the rate. Divide the tax by the payment amount and multiply by 100.
- Compare. 0.5% fits an ATL filer and 1% fits a non-filer. 5% or 10% is the old rate.
- Complain if it is wrong. Call your bank, ask for a complaint number, and ask for the difference to be explained or returned.
If the bank does not fix it, you can take a written complaint further. Our pages on complaining to the State Bank on Sunwai and to the Banking Mohtasib explain how.
What Rs 10,000 spent abroad costs in tax and fees
On a Rs 10,000 card payment abroad, FBR's current rate means Rs 50 in advance tax for an ATL filer and Rs 100 for others. Under the old rates it was Rs 500 and Rs 1,000. Your bank's own foreign transaction fee comes on top.
| On a Rs 10,000 payment abroad | ATL filer | Not on ATL |
|---|---|---|
| Advance tax at FBR's current rate | Rs 50 (0.5%) | Rs 100 (1%) |
| Advance tax at the old rate | Rs 500 (5%) | Rs 1,000 (10%) |
| Meezan debit card fee on an international purchase | Rs 400 (4%) | Rs 400 (4%) |
| SadaPay fee on international spending above Rs 800 | Rs 600 (6%) | Rs 600 (6%) |
So after the tax cut, the bank's own fee is now by far the bigger cost. Meezan's card page lists 4% on an international purchase. SadaPay's schedule lists 6% on international spending above Rs 800, and Rs 55 plus 6% below that.
The exchange rate also matters. HBL's debit card FAQ says it converts foreign payments at the rate at which it buys dollars to settle them, in line with State Bank rules, plus its foreign transaction charge. That rate can differ from the interbank rate you see in the news.
If you pay for games or apps in dollars, our walk-throughs for paying for Steam games and paying on Google Play show where these charges appear.
Get on the ATL to pay the lower rate
Non-filers pay double: 1% instead of 0.5%. The gap is small per payment, but it adds up across a year of subscriptions. Filing your return and getting your name on the Active Taxpayers List also lowers several other taxes.
The tax is called advance tax because it is collected before your yearly return is filed. Whether you can claim it back against your final tax depends on your own tax position, so ask a tax adviser or check when you file.
If you are not yet a filer, start with how to become a tax filer in Pakistan. Note that filing late now carries an extra charge to get onto the list.
Common questions
What is the tax on card payments abroad in Pakistan now?
FBR's rate card for tax year 2027 lists 0.5% for people on the Active Taxpayers List and 1% for everyone else, under section 236Y.
Was the tax 5% before?
Yes. FBR's rate card for tax year 2026, which ran to 30 June 2026, showed 5% for ATL filers and 10% for others.
Does the tax apply to Netflix and other subscriptions?
It applies to amounts paid abroad through credit, debit or prepaid cards. A subscription billed by a foreign company to your Pakistani card is usually treated as a payment abroad.
Why does my bank's website still say 5%?
Some pages had not been updated when we checked on 9 October 2026. Check your statement to see what was actually deducted.
What if my bank took 5% after 1 July 2026?
Call the bank, ask for a complaint number, and quote section 236Y and FBR's rate card for tax year 2027. Escalate to the State Bank if it is not resolved.
How we verified this
What we checked, where we read it, and what we could not confirm.
Last checked on 9 October 2026. We read FBR's withholding tax rate cards page and opened both the tax year 2027 card (PDF and spreadsheet) and the tax year 2026 card. We read Meezan Bank's Visa debit card page, SadaPay's schedule of charges and HBL's debit card FAQs on their own websites. We did not read the Finance Act 2026 itself, and we made no foreign card payment to test what any bank deducts.
About the author
Technology Journalist & Multimedia Producer
Ahmad Ali is a technology journalist and multimedia producer at Pakistan Era, joining the team in October 2026. He covers consumer technology and digital life for Pakistani readers, combining research with hands-on product testing.
