The Federal Board of Revenue (FBR) is working on a plan to tax TikTok content creators, a Senate panel was told on Wednesday.
During a meeting of the Senate Standing Committee on Finance and Revenue, Senator Faisal Vawda said the FBR is finalising details of the tax. He claimed most recoverable income would come from Punjab and urged the authority to start enforcement there.
The committee, led by Senator Saleem Mandviwalla, also reviewed the Pakistan Remittances Initiative (PRI) and the government’s remittance subsidy scheme. State Bank officials briefed that the subsidy, first set at 20 Saudi riyals per transaction in 2020, was increased to 30 in 2024 but later reduced back to 20.
Vawda criticised the policy, calling it a “scandal” that favoured commercial banks over overseas Pakistanis. He demanded an inquiry and recovery of misused funds.
Mandviwalla echoed concerns, saying the subsidy was meant to help remittance recipients in Pakistan but was instead being absorbed by banks and money transfer operators. He pushed for lower transaction costs to ensure full benefits reach families.
The committee asked the Finance Ministry to present a report on subsidy spending over the last four years and recommended reforms to improve transparency in the PRI.
Minister of State for Finance Bilal Azhar Kayani assured senators that the government would review the scheme with the State Bank and other stakeholders.
Separately, the FBR informed the panel that a presidential order issued on July 16 remains unimplemented as the case is pending before the Sindh High Court.
