Islamabad (National Times) The federal government has proposed a 5 percent withholding tax on income earned by social media influencers, YouTubers, and other digital content creators in the budget 2026-27.

According to the Finance Bill, the tax will be deducted at the time of crediting earnings into the account of the respective individual.

The proposal states that both resident and non-resident individuals earning income from social media platforms will be subject to a 5 percent tax deduction.

The bill also defines a “social media influencer” as any individual or entity earning income through digital or social media platforms.

The government said the move aims to bring the rapidly growing digital economy into the tax net and ensure uniform taxation across all income sources.