ISLAMABAD: The government of Pakistan has imposed a 5 percent withholding tax on income earned by social media influencers, according to the Finance Bill for the upcoming fiscal year.
As per the bill, the tax will apply to earnings generated through social media platforms, including YouTube, Facebook, TikTok, and Instagram.
Under the new policy, banks will be responsible for deducting the withholding tax at the time of crediting payments into influencers’ accounts.
The move is part of broader efforts to bring digital and online income streams into the formal tax net in the next financial year.
Earlier, in the Budget 2026-27 presented in the National Assembly, Finance Minister Muhammad Aurangzeb announced key revisions to the Super Tax regime, including major relief for mid-tier businesses and a reduction in rates for high-income companies, ARY News reported.
The government of Pakistan said the changes are aimed at supporting industrial growth, encouraging investment and easing the tax burden on manufacturing and corporate sectors, while maintaining higher contributions from select strategic industries.
Revised Super Tax Structure (Budget 2026-27)
Mid-Tier Businesses (Rs 150 million – Rs 500 million annual income):
- Super Tax completely abolished
- Earlier rate ranged from 1 percent to 7.5 percent depending on income slabs
High-Tier Businesses (above Rs. 500 million annual income):
- Super Tax reduced from 10 percent to 8 percent
The relief applies across six income slabs within the mid-tier category, effectively removing the additional tax burden on small and medium-sized corporate entities.
Exclusions Maintained
The finance minister clarified that existing Super Tax and surcharge structures will remain unchanged for certain high-earning sectors, including:
- Banking sector
- Oil and gas exploration companies
- Fertilizer companies
Officials said the targeted approach is designed to provide relief to general manufacturing and industrial sectors while ensuring continued revenue from highly profitable strategic industries.
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