Pakistan’s federal government has proposed a new 5% withholding tax on income earned by digital content creators and social media influencers under the Finance Bill 2026.

The tax will apply to revenue generated from platforms such as YouTube, TikTok, Facebook, and Instagram. According to the proposal, banks and financial institutions will automatically deduct the tax at source when payments are credited to creators’ accounts, making compliance mandatory and system-based.

The move is expected to impact Pakistan’s growing creator economy and has sparked debate over taxation policy, digital entrepreneurship, and online income regulation.

Pakistan Finance Bill 2026: 5% Tax On YouTube & Social Media Income

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Pakistan Finance Bill 2026: 5% Tax On YouTube & Social Media Income