The Federal Board of Revenue (FBR) has decided to bring social media earnings into the tax net.
According to officials, the FBR has devised a mechanism to collect taxes from digital income and has invited experts to submit their recommendations within a week.
After this consultation period, a final framework for tax collection will be introduced, with all feedback and objections reviewed beforehand.
The taxation of social media income will be carried out under a special procedure outlined in Article 99-C.
FBR stated that both residents and non-residents earning through viewership and subscribers in Pakistan will fall under the tax regime.
Under the proposed rules, social media accounts with 50,000 or more subscribers will be treated as businesses, while generating 12,500 views in a single quarter will also qualify as business activity for taxation purposes.
Officials have further proposed a benchmark for YouTube earnings, suggesting Rs 195 per 1,000 views as the standard for assessing taxable income.
Pakistan works to narrow tax gap as FBR collects Rs9.3 trillion
Pakistan’s tax collection has fallen well short of expectations, with the shortfall widening to Rs610 billion during the first nine months of the current fiscal year, raising concerns over the country’s ability to meet key conditions set by the International Monetary Fund.
Data released by the Federal Board of Revenue (FBR) showed that the government collected just over Rs9.3 trillion in taxes between July and March of FY26. This was significantly below the target set under the IMF programme, and even further behind the original goal of Rs10.1 trillion for the same period.
The gap has continued to grow despite the IMF declining to ease the annual target of Rs13.98 trillion, leaving the government with limited room to adjust.
Conflict adds pressure to revenues
Officials said the ongoing Middle East conflict played a notable role in weakening tax collection, particularly in March. Around Rs100 billion in revenues was reportedly lost during the month alone.
Disruptions in gas supply reduced payments from fertiliser plants by Rs35 billion, while import-related taxes took a hit of about Rs65 billion due to supply chain issues linked to the closure of the Strait of Hormuz.
As a result, March collections stood at Rs1.182 trillion, missing the monthly target by Rs185 billion. The increase compared to the same month last year was modest at 6 percent, reflecting the broader slowdown.
