The Pakistan Finance Bill, which was presented in the National Assembly on June 12, 2026, has proposed a 5% tax on income earned through social media platforms by local and foreign digital content creators.
On Monday, the Senate Standing Committee on Financ, chaired by Senator Saleem Mandviwalla, approved the proposed tax while reviewing proposals included in the Finance Bill 2026. Under the proposed framework, earnings generated by content creators, influencers and online entrepreneurs through platform monetisation, advertising revenue and other digital activities would be brought into the tax net, Profit reported.
The measure is contained in the newly proposed Section 154B of the Finance Bill 2026, which separates earnings from global social media platforms from income generated through traditional information technology and software exports.
Banks and non-banking financial institutions would be required to deduct 5% tax from inward remittances or account credits originating from social media platforms such as YouTube, Facebook, Instagram and TikTok.
