Social Media Tax Finance Bill 2026 Pakistan Budget — A social media influencer records content on a smartphone as Pakistan introduces a new withholding tax on digital earnings.

5% Withholding Tax Social Media Pakistan Announced

Finance Bill 2026 Introduces 5% Withholding Tax Social Media Pakistan for Influencers

By Desk Assistant On Jun 13, 2026

Islamabad – (Web Desk) – Pakistan’s government has proposed a 5% withholding tax social media Pakistan rule that will apply to income earned by influencers on platforms like YouTube, Facebook, Instagram and TikTok.

Under the Finance Bill 2026, all banking and non-banking financial institutions must deduct this tax when crediting or receiving any amount that comes from social media platform revenues.

The 5% deduction will apply to resident individuals who are active taxpayers. Non-resident persons earning through these platforms will also face the same 5% withholding tax rate.

The bill defines a social media influencer as any individual or entity earning income through a social media platform. Payments may come through domestic remittances, transfers or account credits.

For resident persons, this withholding tax will count as the minimum tax liability. For non-residents without a permanent establishment in Pakistan, the deducted tax will be treated as a final tax.

Meanwhile, Finance Minister Muhammad Aurangzeb presented the federal budget with a total outlay of Rs18,771 billion. He said the budget comes at a time when Pakistan’s voice is heard and its friendship is valued globally.

The largest share of the budget, Rs8.054 trillion, is set aside for mark-up payments. Rs3 trillion goes to defence and Rs1 trillion is allocated for the federal development programme.