Islamabad: A parliamentary committee on Monday approved a proposal to impose a five percent tax on income earned through social media platforms by local and foreign digital content creators, as part of its review of the Finance Bill 2026.
The proposal was endorsed by the Senate Standing Committee on Finance, chaired by Senator Saleem Mandviwalla. Finance Minister Muhammad Aurangzeb and Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial briefed the committee on the proposed taxation framework.
Under the proposal, annual social media income of up to PKR 600,000 will remain exempt from tax. Earnings between PKR 600,000 and PKR 1.2 million will be subject to a five percent tax.
The measure aims to bring income generated through social media platforms into the tax net, reflecting the growing role of digital content creation, online entrepreneurship and platform monetisation as sources of earnings.
The proposal sparked debate among committee members, with some lawmakers expressing concern that additional taxation could discourage foreign exchange inflows. Senator Mandviwalla warned that higher taxes might reduce incentives for digital earners to bring income into Pakistan, while Senator Abdul Qadir argued that individuals earning through overseas digital platforms should be encouraged rather than burdened with excessive taxation.
Responding to the concerns, FBR Chairman Langrial said social media earnings should be treated like any other taxable income. “We are simply asking for our share from social media income,” he told the committee.
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