The Pakistani government is poised to expand its tax base by bringing digital content creators, including YouTubers and freelancers, into the tax net as part of the upcoming Budget 2025-26.
This initiative aims to generate an estimated Rs500- 600 billion in additional revenue for the fiscal year, according to a research report by Topline Securities.
The Federal Board of Revenue (FBR) is considering implementing new tax measures targeting income earned through digital platforms such as YouTube, TikTok, and Instagram.
This move is part of a broader strategy to tap into the rapidly expanding digital economy and align Pakistan’s fiscal policies with global digital trends .
Proposals from policy think tanks, notably the Institute of Cost and Management Accountants of Pakistan (ICMAP), suggest imposing a 3.5% tax on annual earnings exceeding Rs5 million from platforms like YouTube.
The ICMAP estimates that this tax could contribute an additional Rs52.5 billion to the national exchequer, approximately 0.06% of Pakistan’s GDP, which is currently around $350 billion (Rs87.5 trillion).
The FBR is also evaluating the feasibility of introducing a tax on digital subscription services such as Netflix, Disney+, and Hotstar. However, exemptions would be considered for low-income users and minors to ensure that the tax burden remains equitable.
This potential policy shift underscores the FBR’s evolving approach to modern taxation as the country adapts to global digital transformations.
By including YouTube and other social media earnings in the tax net, the FBR aims to ensure fair contribution from high-earning digital entrepreneurs and support public sector development.
