Pakistan’s Senate Standing Committee on Finance approved a social media income tax of 5% on annual earnings above Rs. 600,000 from platforms including YouTube, Facebook, Instagram and TikTok.
The proposal was approved by a majority vote during a meeting chaired by Senator Saleem Mandviwalla. Federal Board of Revenue officials said many Pakistanis now earn substantial income through social media platforms.
The FBR chairman told the committee that the government did not want to stop creators from earning online. He said the proposal aimed to collect tax from a growing income stream.
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Senator Saleem Mandviwalla said people should be allowed to earn through social media. He added that the federal government saw the sector as a significant source of revenue.
Committee member Senator Abdul Qadir opposed the measure. He said young Pakistanis bringing foreign exchange into the country through online work should be allowed to work freely.
Under the proposed framework, individuals earning up to Rs. 600,000 a year from social media activity will remain exempt. Those earning between Rs. 600,000 and Rs. 1.2 million people will face a 5% withholding tax annually.
