Content creators, influencers seek tax concessions

Digital artists, content creators and influencers are urging the government to rethink how their earnings are taxed, according to The Express Tribune. They argue that a fairer framework could encourage online entrepreneurship, bring in foreign exchange and open doors for emerging talent. Their main concern is taxation based on gross receipts, which they say can weigh heavily on creators with high production costs or irregular income.

The Federal Board of Revenue has put a withholding tax on income that creators receive from YouTube, Facebook, Instagram and TikTok. Banks and non-banking financial institutions must deduct it when the amount is credited or received, under Section 154B of the Income Tax Ordinance, 2001. Separate SROs, 642(I)/2026 and 1641(I)/2026, set a minimum benchmark of Rs195 ($0.70) per 1,000 YouTube views and allow expenses of up to 30% of total revenue.

Sher Muhammad, known as Sher Khumber, said tax should not become a barrier for artists building audiences abroad, and noted that artificial intelligence is already squeezing their revenue. Dr Noman Ahmed Said, CEO of SI Global Solutions, wants documented production costs recognised and the 30% ceiling reconsidered, warning that excessive taxes could hurt investment and employment. The report also notes there is no reliable national average for creator earnings, and Dr Noman has asked FBR to consult creators and publish an impact assessment.