Govt Proposes 5% Withholding Tax on Social Media Income

Sania Siddiqui
Published June 13, 2026

ISLAMABAD: The federal government has proposed a 5% withholding tax on revenues earned by social media influencers from platforms such as YouTube, Facebook, Instagram and TikTok.

The Finance Bill 2026 defines a social media influencer as any individual or entity that earns income through a social media platform.

It further states that payments may be made through domestic remittances, transfers or account credits. The proposed tax will constitute the minimum tax liability for resident persons.

For non-residents who do not have a permanent establishment in Pakistan, the withholding tax deducted will be treated as a final tax, according to the bill.

Finance Minister Muhammad Aurangzeb on Friday presented a budget with a total outlay of Rs18,771 billion as the federal government tries to balance a fragile economic situation due to an energy crisis amid the Middle East tensions.

If approved, the new tax system will officially integrate social media earnings into Pakistan’s formal financial structure and bring online creators under standard taxation rules.

Sania Siddiqui

Sania Siddiqui is a skilled content writer with over two years of experience in crafting engaging and SEO-optimized content. She blends creativity with strategy, turning complex ideas into engaging blogs, articles, and web copy. Always learning, always writing—Sania thrives on making words work harder.