Digital content creators appeal against proposal of new tax on their earnings in upcoming budget

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Content creators and influencers across various digital platforms made a plea to the government to avoid imposing new taxes on their earnings in the upcoming budget. They argue that the sector not only earns valuable foreign exchange for Pakistan but also provides educational and informative content for local and global audiences.

The appeal comes in response to reports of the government’s consideration of introducing taxation measures targeting content creators and influencers who generate significant income through social media platforms and corporate partnerships. According to the latest data from the State Bank of Pakistan, the country’s freelancers, digital workers, and content creators have contributed nearly $1 billion in foreign exchange so far during the fiscal year 2025-26.

Stakeholders proposed a classification framework for creators based on their content nature and income levels, suggesting tax relief and other supportive policies for those producing responsible, educational and ethical content. n.

Mehreen Iftikhar, a senior investigative journalist and YouTube creator, highlighted the struggles faced by many journalists who are inadequately paid and often experience salary delays as a result of which they have set up their own YouTube channels and other platforms. She noted that additional taxation could discourage them from continuing to produce informative videos, independent news analysis and educational content. Iftikhar stressed that content creators are important to Pakistan’s digital economy, generating foreign exchange and creating job opportunities in various related sectors.

Furthermore, Fahad Kehar, a senior researcher and content producer, pointed out that income from digital platforms is already taxed when it flows into bank accounts. He noted the complexity of payment structures for social media platforms and argued that any new tax based on subscriber counts or views would be absurd and discouraging. Kehar also mentioned that Pakistani creators earn considerably less than their international counterparts and receive insufficient support from local authorities.

Ibrahim Amin, Chairman of the Pakistan Freelancers Association (PAFLA), urged the government to consider the negative impact additional taxes could have on creators who produce skills-based and educational content. He emphasized that PAFLA supports digital workers who respect cultural values and abide by laws and regulations, contributing positively to the national economy.

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