Social media earnings now on FBR radar

ISLAMABAD: The Federal Board of Revenue (FBR) has moved to collect income tax on earnings generated through social media platforms, ARY News reported.

The FBR has established a procedure to recover taxes from digital earnings and has sought suggestions from experts, giving them one week to submit their feedback.

Following this one-week period, the final tax collection framework will be implemented. During this time, all received objections and suggestions will be reviewed.

The tax on social media earnings will be applied through a special procedure under Article 99-C.

According to FBR officials, both local residents and non-residents earning from viewership and subscribers in Pakistan will be required to pay taxes.

Social media account holders with at least 50,000 subscribers will now be classified as businesses.

Furthermore, reaching 12,500 views within a single quarter will also be considered a business activity for tax purposes.

FBR officials have suggested a benchmark for YouTube earnings, proposing that an income of Rs 195 per 1,000 views be used as the standard for tax assessment.

Earlier, the FBR Collectorate of Customs Appraisement & Enforcement, Quetta, has successfully surpassed its revenue collection targets for the third quarter.

According to the FBR, against a target of Rs 7.36 billion, the collectorate collected a staggering Rs 9.4 billion.

Despite operational challenges stemming from the conflict in the Middle East, Pakistan Customs performed exceptionally well by maintaining a continuous flow of trade.

The department ensured the uninterrupted clearance of Liquefied Petroleum Gas (LPG) and other essential commodities.

Furthermore, the flow of exports through the Taftan border remained fully operational, with the collectorate providing every possible facility to support exports to Iran and Central Asian countries.