ISLAMABAD: The Federal Board of Revenue (FBR) has initiated a significant move to bring earnings from social media platforms into the formal tax net, according to reports.
This development reflects the government’s growing focus on documenting the digital economy and ensuring that income generated online is properly taxed. As part of this effort, the FBR has drafted a preliminary procedure for collecting taxes on digital earnings and has invited feedback from industry experts, giving them a one-week window to submit their suggestions.
Officials stated that once this consultation period concludes, the FBR will finalize and implement a comprehensive tax collection framework. During the interim phase, all objections and recommendations received from stakeholders will be carefully reviewed to refine the policy.
The proposed taxation mechanism will operate under a special procedure outlined in Article 99-C, aimed specifically at regulating income streams generated through online platforms.Under the new guidelines, both residents and non-residents earning through Pakistani viewership and subscriber bases will fall within the tax ambit.
The FBR has also introduced criteria to classify social media activity as a business. Accounts with at least 50,000 subscribers will be treated as commercial entities, while those generating 12,500 views within a single quarter will also be considered engaged in business activity for taxation purposes.
Additionally, officials have suggested a benchmark for YouTube earnings, proposing an estimated income of Rs 195 per 1,000 views as a standard measure for tax assessment.In a separate development, the FBR reported strong performance by its Collectorate of Customs Appraisement and Enforcement in Quetta, which exceeded its revenue targets for the third quarter.
Against a target of Rs 7.36 billion, the collectorate successfully collected Rs 9.4 billion, demonstrating robust operational efficiency.Despite challenges posed by ongoing tensions in the Middle East, Pakistan Customs ensured the smooth continuation of trade activities.
The department maintained uninterrupted clearance of essential commodities, including Liquefied Petroleum Gas (LPG), and facilitated consistent export flows through the Taftan border. Authorities also extended maximum support to exporters trading with Iran and Central Asian states, ensuring that regional trade remained stable amid external uncertainties.