"Don't discourage us," digital voices oppose proposed tax on earnings, suggest classification framework
Content creators. influencers across various digital platforms have urged the government to refrain from imposing new taxes on their earnings in the upcoming budget, arguing that the sector contributes valuable foreign exchange earnings while promoting informative and knowledge-based content for both local and international audiences.
Stakeholders called on the government to develop a classification framework for content creators. influencers based on the nature of their content and income levels. They suggested that creators producing responsible, educational and ethical content should be incentivised through tax exemptions and supportive policies.
This stance emerged after reports surfaced that the government is considering imposing taxes on the income of content creators. influencers who earn substantial revenues through social media platforms and corporate partnerships. Pakistan's freelancers, content creators. digital workers have contributed nearly $1 billion in foreign exchange earnings so far in FY2025-26, according to the latest data from the State Bank of Pakistan (SBP).
content creator. "Taxing content creators who produce informative videos, news analysis and podcasts is tantamount to discouraging independent, responsible and unbiased journalism."
and other digital platforms to provide independent perspectives to audiences while generating sustainable income for themselves and their team members. Iftikhar further said that content creators continue to invest heavily in equipment, technology. production capabilities to build and monetise their platforms. Imposing additional taxes on their earnings, she argued, could discourage the production of informative content, independent news analysis. educational content.
rs and TikTokers, producing content on various genres, including podcasts, news analysis, news and infotainment. Only a few content creators are also producing entertainment content, which is labelled as indecent or immoral.
Multiple content creators are working independently on various social media platforms,. a few media outlets are also running their own news websites and s with sizeable team members. All these digital creators are paying income tax to the tax authority. The placement of commercial, sponsored. endorsement posts on these digital platforms also generates tax revenue on account of general sales tax. Fahad Kehar, a senior researcher. content producer, said that digital platforms already pay taxes to the government with the inflow of every income transaction into bank accounts.
He noted that the criteria for social media platforms vary. are complicated regarding content and views related to payments for creators. Any benchmark for additional tax deduction with respect to subscribers. views will be absurd and discourage content creators contributing to the economy. Pakistani content creators earn far less than what others make in different countries; however, our relevant authorities are not doing anything to support digital publishers. bring in the foreign exchange that our country needs, he further said.
rs and influencers who uphold Pakistan's cultural values and comply with relevant laws and regulations, he said.
He noted that Pakistan is home to the world's fourth-largest freelancing community, with an estimated three million freelancers. However, many continue to incur significant losses due to high transaction fees. deductions imposed by international freelancing platforms and payment service providers. Stakeholders urged policymakers to adopt a balanced approach that promotes the growth of the digital content industry while encouraging responsible content creation. compliance with existing regulations.
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