A Senate committee in Pakistan has backed a proposal to impose a 5% tax on income earned through social media platforms, aiming to bring digital earnings into the formal tax system.
The proposal was discussed during a meeting of the Senate Standing Committee on Finance, where officials highlighted the growing number of individuals earning substantial income through platforms such as YouTube, TikTok, Facebook, and Instagram.
According to officials, the move is intended to broaden the tax base and ensure that online content creators and influencers contribute to the national economy like other taxpayers. The proposed tax would apply to monetized digital earnings generated through advertisements, sponsorships, and online promotions.
Committee members said the digital economy is expanding rapidly in Pakistan, making it necessary to introduce proper taxation mechanisms for online income streams. However, some members also stressed the need to protect small content creators and avoid discouraging youth involved in digital entrepreneurship.
The proposal is expected to be reviewed further before becoming part of any final taxation policy or finance bill amendments.
