BUDGET 2026-27: Senate panel backs 5pc tax on earnings from social media

The move reflects the growing significance of social media as a source of income, with digital platforms increasingly serving as lucrative business avenues rather than merely communication tools. Content creators, influencers and online entrepreneurs are now generating millions of rupees annually through platform monetisation, advertising revenue and audience engagement. The Senate Standing Commi­ttee on Finance, chaired by Senator Saleem Mandviwalla, reviewed the proposed taxation framework and endorsed the mechanism for bringing social media earnings into the tax net. Finance Minister Muhammad Aurangzeb and Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial briefed the committee on the bill’s provisions. Separately, the National Assembly Standing Committee on Finance in its meeting, headed by MNA Naveed Qamar, directed the finance ministry and FBR to submit detailed estimates of revenue generation and relief measures to assess their overall economic impact. The proposed tax on social media income sparked debate am­ong committee members, with some expressing concerns that additional taxation could dis­co­urage foreign exchange inflows. Senator Saleem Mandviwalla warned that higher taxes might reduce incentives for digital earners to bring income into Pakistan. Senator Abdul Qadir echoed similar concerns, arguing that individuals earning through overseas digital platforms should be encouraged rather than burdened with excessive taxation. Responding to the