Pakistan, June 13 -- The federal government has proposed a 5 percent withholding tax on income earned by social media influencers under the Finance Bill 2026, targeting earnings generated through platforms such as YouTube, Facebook, Instagram and TikTok. Officials said the move aims to bring digital income into the formal tax net and improve overall revenue collection.

Under the proposed rules, banks and non-banking financial institutions will deduct the tax automatically whenever payments linked to social media earnings are credited to accounts. This mechanism is designed to ensure compliance at the source and reduce tax evasion in the fast-growing digital economy.

The bill defines a social media influencer as any individual or entity ...