KARACHI – Pakistani YouTubers have been raking in millions from views, sponsorships, and ads, building a good fortune. But their fortunes may soon face shake-up as Federal Board of Revenue (FBR) has put social media earners firmly on its radar, planning to tax their digital earnings for the first time.
Federal Board of Revenue (FBR) has set its sights on social media earners, deciding to bring all influencers and content creators into the tax net. The move targets YouTubers, TikTokers, and Instagram personalities, pushing to tap on economy around untaxed online income.
Tax Proposal for YouTubers
Federal authorities made a draft amendment to Income Tax Rules 2002, which will apply to Pakistani citizens earning through social media. This includes earnings from sponsorships, advertisements, or direct income generated via social platforms, particularly from interactions with Pakistani users.
The draft specifies that taxable income will be calculated based on total earnings and expenses, while average views and the number of posts over the year will also factor into the assessment. Influencers will be required to pay income tax according to a specific formula and must report these earnings separately in their annual income tax returns.
A one-week window has been set for submitting objections, suggestions, or recommendations on the draft. After feedback is received, the FBR will finalize the amendments, marking a historic step in regulating Pakistan’s booming social media economy.
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