Govt considering increasing tax on income through social media

ISLAMABAD: Federal Government is considering a proposal to increase tax on income made through social media platforms.

According to details, International Monetary Fund (IMF) has placed tough conditions for resumption of its program and has asked government to reduce income tax credits and allowances.

In view of conditions of the international lender, authorities are considering proposal to hike income tax on income of over Rs1 million per annum.

Sources have further said that a proposal to hike tax on income through social media platforms including online games, TikTok, and YouTube.

Pakistan and the IMF [International Monetary Fund] are yet to reconcile on the fiscal framework as Islamabad is making its last-ditch efforts to convince the Fund staff for moving ahead with ‘manageable fiscal adjustments’ of 1.5 to 2 per cent of gross domestic product (GDP) in the coming budget.

Top official sources confirmed to that the economic managers are still in the catch-22 situation, as on the one hand they are required to convince the IMF of a slower pace of fiscal adjustments, and on the other they are facing the daunting task of taking their political leadership into confidence for reducing the cost of losing political capitals through tough measures.