The federal government has proposed a 5 percent withholding tax on income earned by social media influencers through platforms such as YouTube, Facebook, Instagram, and TikTok.
According to the Finance Bill 2026, a social media influencer is defined as any individual or business that generates income through social media platforms. The bill states that these payments may be received through domestic remittances, bank transfers, or direct credits into accounts.
For resident taxpayers, the proposed withholding tax will be treated as the minimum tax liability. In the case of non-residents who do not have a permanent establishment in Pakistan, the deducted withholding tax will be considered their final tax obligation.
Finance Minister Muhammad Aurangzeb presented the Rs18,771 billion federal budget on Friday as the government seeks to manage the country’s fragile economic situation, which has been further affected by the energy crisis and tensions in the Middle East.
If approved, the new tax measure will formally bring social media earnings into Pakistan’s documented economy and place online content creators under the country’s regular taxation framework.
