ISLAMABAD: A majority of Pakistanis support the government’s proposal to impose a 5% withholding tax on social media influencers and digital content creators, according to a survey conducted by the Press Network of Pakistan (PNP). However, respondents also stressed the need for tax exemptions for small creators and incentives to promote Pakistan’s growing digital economy.
The online survey, conducted following the announcementb of the proposal in the Finance Bill 2026, received responses from 100 participants, including 45 men and 55 women.
Majority Supports Taxation of Influencers
The survey revealed broad public support for bringing social media earnings into Pakistan’s formal tax system while ensuring that taxation does not discourage young entrepreneurs entering the digital content industry.
The federal government has proposed a 5% withholding tax on income earned by social media influencers and digital content creators as part of the Finance Bill 2026. The measure aims to document income generated through digital platforms and increase tax revenue.
According to officials of the Federal Board of Revenue (FBR), earnings from social media platforms have grown significantly in recent years but remain largely outside the country’s tax net. The government estimates that Pakistan’s social media economy generates between Rs4 billion and Rs10 billion annually.
Survey Shows Strong Public Approval
Participants gave an average score of 3.42 out of 5 in support of the proposed 5% withholding tax, indicating an overall positive public opinion.
Support was even stronger for the broader principle of taxation, with respondents assigning an average rating of 3.89 out of 5 to the statement that social media influencers should pay taxes in the same way as businesses and other professionals.
At the same time, respondents acknowledged concerns that the tax could discourage young people from pursuing careers in digital content creation, giving this concern an average score of 3.34 out of 5.
One of the survey’s strongest findings was public support for protecting smaller creators from additional tax burdens.
Respondents awarded an average score of 3.88 out of 5 to the proposal that influencers earning below a specified income threshold should be exempt from the withholding tax.
Participants also strongly favored government incentives to support Pakistan’s digital economy alongside taxation. This recommendation received the survey’s highest average score of 3.92 out of 5, reflecting public demand for policies that encourage innovation, entrepreneurship, and digital business growth.
YouTube Creators Expected to Face Biggest Impact
When asked which platform would be most affected by the proposed tax, 53.8% of respondents identified YouTube creators as the most impacted.
Another 24.6% believed the tax would affect all social media platforms equally, while 9.2% pointed to Instagram, 6.2% selected TikTok, and 3.1% each believed Facebook and independent blogs or websites would face the greatest impact.
Balanced Tax Policy Recommended
According to the PNP report, the findings indicate that Pakistanis generally support taxing social media influencers as part of the country’s broader tax framework. However, respondents emphasized that any taxation policy should be fair, protect small creators, and include supportive measures that encourage innovation and digital entrepreneurship.
The report concluded that as Pakistan’s digital economy continues to expand, policymakers should adopt a balanced approach that broadens the tax base while ensuring the country’s fast-growing digital content industry continues to flourish.
