A majority of Pakistanis support the government’s proposal to impose a 5 percent withholding tax on income earned by social media influencers, according to a new survey by the Press Network of Pakistan (PNP). However, respondents also urged policymakers to protect small creators through exemptions and supportive measures.
The online survey was conducted after the government announced the proposal in the Finance Bill 2026. It included responses from 100 participants, comprising 45 men and 55 women.
The findings showed broad support for bringing digital creators into Pakistan’s formal tax system. At the same time, respondents stressed that taxation should not discourage young entrepreneurs or people entering the digital content industry.
The proposed 5 percent withholding tax forms part of the Finance Bill 2026. The government says the measure aims to document income generated through social media platforms and improve tax collection.
Officials from the Federal Board of Revenue (FBR) have noted that earnings from digital platforms have grown rapidly in recent years while much of that income remains outside the country’s tax net. According to government estimates, Pakistan’s social media economy generates between Rs4 billion and Rs10 billion annually.
Survey highlights support for fair taxation
The PNP survey gave the proposed 5 percent withholding tax an average support score of 3.42 out of 5. Meanwhile, respondents expressed even stronger support for the broader principle that influencers should pay taxes like other professionals and businesses. That statement received an average score of 3.89 out of 5.
However, participants also recognised potential challenges. They gave an average score of 3.34 out of 5 to concerns that the tax could discourage young people from pursuing careers in digital content creation.
Many respondents supported exempting smaller creators from the proposed tax. The recommendation to exclude influencers earning below a certain income threshold received an average score of 3.88 out of 5.
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Participants also strongly supported government incentives alongside taxation. That recommendation received the survey’s highest average score of 3.92 out of 5.
The report concluded, “As Pakistan’s digital economy continues to expand, balanced policymaking will be essential to ensure that taxation strengthens rather than hinders one of the country’s fastest-growing sectors.”
YouTube creators expected to feel the biggest impact
The survey also explored which platforms would feel the greatest impact if the proposal becomes law. A total of 53.8 percent of respondents said YouTube creators would face the biggest effect. Another 24.6 percent believed the tax would affect all social media platforms equally.
Meanwhile, 9.2 percent selected Instagram, while 6.2 percent identified TikTok. Facebook and blogs or websites each received 3.1 percent of responses.
Pakistan’s digital creator economy has expanded rapidly in recent years as thousands of individuals generate income through YouTube, TikTok, Instagram, Facebook and other online platforms. Industry experts say the sector has created new employment opportunities, particularly for young entrepreneurs and freelancers.
The survey suggests that most Pakistanis support taxing influencer income. At the same time, they want the government to adopt balanced policies that encourage innovation, protect small creators and promote long term growth in the country’s expanding digital economy.
