Govt Proposes 5% Tax on Social Media Earnings

Islamabad: (Web Desk) – The federal government has proposed a 5 percent withholding tax on income earned through social media platforms, including YouTube, Instagram, Facebook, and TikTok, according to reports.

The proposed measure will apply to content creators, digital influencers, vloggers, and other individuals generating revenue through online platforms and social media activities.

Under the new taxation framework, a 5 percent withholding tax will be deducted from earnings generated through digital content creation and monetized social media accounts.

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Sources said banks have been authorized to collect the tax and will automatically deduct the applicable amount when payments linked to social media income are credited or transferred to account holders.

The move is part of broader efforts to document digital earnings and expand the country’s tax base by bringing online revenue streams under the formal taxation system.