ISLAMABAD: As part of its efforts to broaden the tax base and enhance revenue collection, the government is planning to bring YouTubers, freelancers, and other digital content creators into the tax net in the upcoming Budget 2025-26, aiming to generate an additional Rs500–600 billion, according to a research report by Topline Securities.
The Federal Board of Revenue (FBR) is reviewing new tax proposals targeting income earned through online platforms such as YouTube, TikTok, and Instagram. The move is part of a wider strategy to align Pakistan’s taxation framework with the evolving global digital economy.
Among the key recommendations under consideration is a proposal by the Institute of Cost and Management Accountants of Pakistan (ICMAP) to impose a 3.5% tax on annual earnings exceeding Rs5 million from digital content creation. ICMAP estimates this measure alone could add Rs52.5 billion to the national treasury — roughly 0.06% of GDP, based on Pakistan’s estimated $350 billion (Rs87.5 trillion) economy.
In addition, the FBR is assessing the viability of taxing digital subscription services like Netflix, Disney+, and Hotstar. However, the policy may include exemptions for low-income households and minors to ensure fairness and avoid disproportionate burdens.
This initiative highlights the government’s shift towards modernizing tax policy to reflect the digital transformation of the economy. By formally taxing digital income streams, the FBR aims to ensure high-earning content creators contribute their fair share to national development.
Final decisions on these proposals are expected in the weeks leading up to the official budget presentation.
