Content Creators, Influencers Seek Tax Concessions on Digital Earnings
KARACHI: Digital artists, content creators and influencers have called on the government to grant tax concessions for content creators and review how their earnings are taxed, arguing that a fairer framework would encourage digital entrepreneurship, draw in foreign exchange and open doors for emerging talent.
They said earnings from social-media platforms hinge on far more than views and subscriber counts: audience location, advertising demand, platform policies, production costs and the nature of the content all shape what a creator actually takes home. Taxation based mostly on gross receipts, they argued, lands hardest on creators with high production costs or irregular income.
How creators are taxed now
The Federal Board of Revenue (FBR) introduced a withholding-tax regime on revenues earned by digital creators and influencers from YouTube, Facebook, Instagram and TikTok. Under Section 154B of the Income Tax Ordinance, 2001, banks and non-banking financial institutions must deduct tax when such revenues are credited or received, a measure FBR describes as bringing digital income into the formal tax system.
FBR later notified rules through SRO 642(I)/2026 and SRO 1641(I)/2026, setting a minimum revenue benchmark of Rs195 ($0.70) per 1,000 YouTube views and allowing expense claims of up to 30 per cent of revenue.
The 30pc expense ceiling under fire
Sher Muhammad, known as Sher Khumber, a Pakistani music-industry entrepreneur and digital music and rights specialist, said taxation should not become a barrier to the growth of the country’s content-creation industry.
He said artificial intelligence was already squeezing the revenue streams of Pakistani artists, given the absence of comprehensive digital-rights protection, and that additional taxation could squeeze creators’ earnings further. “Pakistani cultural content, including poetry and music, is receiving appreciation worldwide through social-media platforms. However, many talented artists do not have the technical expertise or resources required to optimise the monetisation of their content,” he said.
Muhammad urged a more supportive tax framework that recognises the costs of producing and monetising digital content, adding that lower taxes would help artists set up digital studios.
The case for tax concessions for content creators
Dr Noman Ahmed Said, chief executive of SI Global Solutions, said content creators should contribute to Pakistan’s tax base, but the system must recognise their production costs and irregular income patterns. He noted that withholding tax on platform receipts could prove substantial for creators operating on thin margins, and called for a reconsideration of the 30 per cent expense ceiling.
“Pakistan should recognise documented business costs, simplify compliance and consider targeted relief for emerging creators,” he said, cautioning that an excessive tax burden could affect investment, employment and foreign-exchange earnings from the digital economy. Neither the tax-revenue gain nor the potential economic loss, he added, can be quantified without reliable sector data, and FBR should consult creators and publish an impact assessment.
Creator earnings vary widely. Salaried content-creator roles in Karachi show a median of about Rs60,000 a month, with a common range of Rs30,000 to Rs80,000. Independent creators depend more on brand deals than platform ads, and 100,000 monthly YouTube views fetch roughly Rs5,000 to Rs20,000, and one million views Rs50,000 to Rs200,000 or more.
FBR has also set up a Lifestyle Monitoring Cell that uses artificial intelligence and social-media intelligence to identify gaps between publicly observable lifestyles and declared income.
What happens next
FBR has not yet responded to the creators’ demand for consultation. For now, this year’s SROs stand, and creators will continue to have tax deducted at source while claiming expenses within the 30 per cent ceiling.
How are content creators currently taxed in Pakistan?
Withholding tax is deducted on revenues received from YouTube, Facebook, Instagram and TikTok under Section 154B of the Income Tax Ordinance, 2001.
What expenses can creators claim?
FBR allows expense claims of up to 30 per cent of total revenue from remunerative social-media content.
Why do creators say the current regime is unfair?
Taxing gross receipts ignores production costs and irregular income, hitting creators who spend heavily on equipment, crews and locations hardest.
What changes are content creators asking for?
A framework that recognises documented business costs, simpler compliance, a review of the 30 per cent expense ceiling, and targeted relief for emerging creators.
