Film and Drama Finance Fund

FDFF is being created in pursuance of the Film Policy 2018, to provide financial grants to film makers with an initial seed money of Rs. 100 million approved by ECC on November 15, 2022. The Film and Drama Finance Fund will be managed by (proposed) Pakistan Film Council, comprising contributors to the Fund, ex-officio members and private members.

The Fund is to invite donations from multiple sources including the corporate sector as part of their Corporate Social Responsibility (CSR). Anyone contributing Rs. 10 million and more shall have a seat in the Pakistan Film Council. The contributors to the Fund will get income tax exemptions under Corporate Social Responsibility, as it has been placed in the 13th schedule of the section 61 of the IT Ordinance 2001.

A draft Statutory Regulatory Order (S.R.O.), under the Public Finance Management Act, 2019 outlining scheme of administration for the FDFF has been moved for the approval of the Federal Cabinet.

After the Cabinet's administrative approval, the FDFF will be formally created and the will be open for donations, investments and financial grants to potential Film projects.

Pakistan Film Council

Pakistan Film Council (Fund Management Committee under PFMA, 2019) is a body to manage the Film and Drama Finance Fund. The responsibility to make decisions regarding disbursement of funds will be made by PFC.

Once the Statutory Regulatory Order is notified by the Cabinet, the Pakistan Film Council will also be notified.

The Pakistan Film Council will comprise of Contributors, Ex-Officio Members and Private Members

Corporate Social Responsibility

The Fund is supposed to invite donations from multiple sources including the corporate sector as part of their Corporate Social Responsibility (CSR).

The name of the Film and Drama Finance Fund has been included in the Thirteenth Schedule of the Income Tax Ordinance 2001, after approval from Cabinet. After the inclusion of the Fund in the Thirteenth Schedule, the donors can claim tax credit on donation to the Fund.

Furthermore, the Ministry of Information and Broadcasting has requested the FBR to proceed with necessary action for placement of the Film and Drama Finance Fund in Table I of sub-clause (1) of clause 66 of Part 1of the Second Schedule to the Ordinance to grant exemptions to income derived by the Fund.

Tax Incentives

FBR has granted the following tax incentives to the Film and Drama Industry in 2022 Finance Act. In order to promote the local film industry, following new measures have been introduced:

• 5 Years Tax Holiday to Cinema Operations
• 5 Years Exemption to Income from Feature Film Production
• 5 Years Exemption from Advance Tax on Imports of Cinematographic Equipment
• Exemption from Withholding on Payments to Distributor, Producer or Importer of Feature Film
• High Advance Tax on Foreign TV Drama and Advertisements
• 5 Years Exemption from Sales Tax on Imports and Supply of Cinematographic Equipment
• 5 Years Zero-Rating of Customs Duties on Imports of Cinematographic Equipment

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.
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.