A new survey by the Press Network of Pakistan shows that Pakistanis largely support the government’s proposed 5% withholding tax on income earned by social media influencers and digital content creators, as outlined in the Finance Bill 2026.
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Survey Reveals Broad Support for Taxation
Respondents gave the 5% tax measure an average rating of 3.42 out of 5. Support for the broader principle of taxing influencers like other professionals stood higher at 3.89 out of 5.
The survey included 100 participants, with 45 men and 55 women taking part.
Calls Grow for Exemptions and Sector Incentives
Participants expressed concern that the tax could discourage young content creators. This worry received an average score of 3.34 out of 5. Strong support emerged for exempting smaller earners below a certain threshold. That proposal scored 3.88 out of 5 on average.
The highest score of 3.92 out of 5 went to the recommendation that the government introduce incentives to support digital content creators. The Federal Board of Revenue estimates untaxed income from social media activities at between Rs4 billion and Rs10 billion annually.
Officials say this revenue is growing fast but remains largely outside the formal tax system. The proposed withholding tax seeks to address this gap and improve revenue collection.
More than half the respondents, 53.8%, believe YouTube creators will be the most impacted by the tax. Another 24.6% said the effect would be similar across all platforms.
Smaller groups pointed to Instagram at 9.2% and TikTok at 6.2%. The survey underscores a public desire for fairness in how the new tax is applied.
Exemptions for low earners could help sustain entry of new talent into the digital space. The PNP report notes that Pakistanis support the notion of influencers contributing to national revenues.
It however emphasises the importance of balanced policies that encourage rather than hinder the digital economy. The sector represents one of the fastest growing areas of economic activity in the country.
Policymakers will need to ensure the tax framework promotes innovation and entrepreneurship among young Pakistanis.