Digital artists, content creators and influencers have urged the government to review the taxation regime on their earnings, saying a balanced framework will support digital entrepreneurship, attract foreign exchange and create opportunities for emerging talent.
Media reports quoted creators as saying that income from social-media platforms depends on factors beyond views and subscriber numbers, including audience location, advertising demand, platform policies, production costs and the type of content.
They said that taxing gross receipts can place a burden on creators, particularly those facing high production costs or irregular income.
The concerns came as the Federal Board of Revenue (FBR) introduced a withholding-tax regime for revenues received by digital content creators and social-media influencers through platforms including YouTube, Facebook, Instagram and TikTok. Under Section 154B of the Income Tax Ordinance, 2001, banks and non-banking financial institutions must deduct tax when such revenues are credited or received.
While FBR has described the measure as part of efforts to bring digital income into the formal tax system, Sher Muhammad, also known as Sher Khumber, a Pakistani music-industry entrepreneur and digital music and rights specialist, stated that taxation should not become a barrier for artists building audiences and monetising their work through international digital platforms.
He said that Artificial Intelligence (AI) is creating new challenges for Pakistani artists, particularly because comprehensive digital-rights protection remains absent, while additional taxation can further reduce creators’ earnings.
He also urged the authorities to consider the costs and challenges involved in producing and monetising digital content. He said lower taxes will also help artists establish digital studios to promote local and regional music and culture through social-media and video-sharing platforms.
FBR has also introduced a mechanism for taxing income from remunerative social-media content. Under the mechanism, a minimum revenue benchmark of Rs195 ($0.70) applies for every 1,000 YouTube video views, while taxpayers can claim expenses of up to 30% of total revenue
Dr Noman Ahmed Said, CEO of SI Global Solutions, said that content creators should contribute to the tax base, but the system must account for their production costs and irregular income. He stated that withholding tax on platform receipts can be substantial for creators operating on thin margins.
He also called for a review of the 30% expense ceiling under FBR’s special procedure for remunerative social-media content.
There is no reliable national average for Pakistani digital content creators because earnings remain heavily skewed and largely unreported. Salaried content-creator roles in Karachi have a median of about Rs60,000 per month, with a common range of Rs30,000 to Rs80,000.
Independent creators rely more on brand deals than platform advertising. In 2026 rate guides, nano creators with fewer than 10,000 followers can charge roughly Rs500 to Rs25,000 per post, while micro creators with 10,000 to 100,000 followers can charge around Rs5,000 to Rs150,000. Larger accounts can charge several hundred thousand rupees to more than Rs1 million.
Local estimates put YouTube income from 100,000 monthly views at around Rs5,000 to Rs20,000 and one million views at Rs50,000 to Rs200,000 or more, depending on the niche and audience location.
Mid-tier creators combining advertising, sponsorships and affiliate income often earn Rs50,000 to Rs400,000 a month, while a small top tier earns considerably more.
The government is seeking to expand the formal tax base as Pakistan’s digital economy generates income through international platforms.
The FBR has also established a Lifestyle Monitoring Cell that uses AI and social-media intelligence to identify potential discrepancies between publicly observable lifestyles and declared income and assets.
