NA panel greenlights 5pc tax on earnings from social media

The National Assembly’s Standing Committee on Finance has approved a proposal to impose tax on earning from social media platforms in the fiscal year 2026–27.

Federal Board of Revenue (FBR) officials informed the committee that earnings from platforms such as YouTube will be subject to withholding tax once foreign remittances are transferred to Pakistani bank accounts.

According to the briefing, the government estimates that total income generated through social media platforms in Pakistan currently stands at around Rs10 billion.

Under the approved proposal, a 5 percent withholding tax will be applied on social media earnings, including digital content income received from abroad.

FBR officials added that when dollar earnings from platforms like YouTube are remitted to Pakistan through banking channels, the tax deduction will be automatically applied at the receiving end.

In the same meeting, the committee also approved the abolition of a 1 percent advance tax on exporters, providing relief to the export sector.