Senate Committee Approves 5% Withholding Tax on Social Media Earnings Above Rs 600,000
Senate panel approves 5% withholding tax on social media earnings above Rs 600,000, raising concerns among digital creators.
The Senate Standing Committee on Finance has approved a proposal to impose a 5% withholding tax on income earned through social media.
The proposal was approved during a meeting chaired by Senator Saleem Mandviwalla, where Federal Board of Revenue Chairman Rashid Mahmood Langrial briefed lawmakers on the plan. Langrial said a large number of people were now earning through social media platforms, and the tax authority was seeking its share from such income.
Under the proposal, social media earnings of up to Rs600,000 will remain exempt from tax. However, income between Rs 600,000 and Rs 1.2 million will be subject to a 5% withholding tax, according to the FBR chairman.
The move drew questions from members of the committee. Mandviwalla observed that people should be allowed to earn through social media, suggesting that the government appeared interested because it could see significant income being generated through online platforms.
Senator Abdul Qadir also cautioned against discouraging digital earners, saying that if dollars were coming into the country, the inflow should be allowed to continue. He added that people who were doing productive work online should be supported rather than burdened.
Despite the concerns, the standing committee approved the proposal. If implemented, the tax could affect social media influencers, YouTubers, TikTokers, Facebook creators, and other online earners whose annual income crosses the exempted threshold.
The decision comes as Pakistan’s digital economy continues to grow, with more people earning through monetized content, brand partnerships, live streaming, affiliate marketing, and other online platforms. Supporters of the proposal argue that such income should be documented like other sources of earnings, while critics warn that additional taxes could discourage young creators and freelancers.
The final implementation will depend on the wider budget approval process and any changes made before the finance bill is passed. For now, the proposal reflects the government’s growing focus on taxing emerging digital income streams.
Also read:
Government Proposes 5% Withholding Tax on Social Media Earnings in Budget 2026
Mobile Phone Taxes Portal
Find the PTA Taxes on All Phones on a Single Page using our Taxes Portal.
Note: Mobile phone tax rates and calculations fall under the jurisdiction of the Federal Board of Revenue (FBR), not the Pakistan Telecommunication Authority (PTA).
Explore NowFollow us on Google News!