ISLAMABAD: A parliamentary committee has approved a proposal to impose a withholding tax on income generated from social media platforms.
According to details, the National Assembly’s Standing Committee on Finance, chaired by Naveed Qamar, approved the tax measure during a meeting held after a break session.
Officials from the Federal Board of Revenue (FBR) informed the committee that a 5 percent withholding tax will be applied on earnings from social media platforms, including YouTube, when foreign currency earnings are transferred into Pakistani bank accounts.
They added that the estimated income generated through social media channels in Pakistan currently stands at around Rs10 billion.
The committee was also briefed on additional tax proposals related to capital gains on inherited property and the sale of plots, including measures to determine property value based on market rates at the time of the original owner’s death.
Officials said the proposal aims to streamline taxation on digital income and bring greater regulatory clarity to emerging online revenue streams.
Electric vehicles in line for massive token tax relief
Earlier, the Punjab government had proposed a 99 per cent reduction in token tax for electric vehicles under the new Finance Bill, as part of a broader package of fiscal and taxation reforms.
According to the proposed amendments, changes have also been suggested to property tax regulations. The bill proposes imposing penalties for delayed property tax payments on a quarterly basis instead of the current monthly system.
In the agriculture sector, the Finance Bill proposes an agricultural income tax of Rs 1,000 per acre on landholdings exceeding 12.5 acres. The tax on irrigated orchards is proposed to be increased from Rs600 to Rs1,000 per acre, while the levy on rain-fed orchards is expected to rise from Rs300 to Rs500 per acre.
The proposed measures are part of the Punjab government’s efforts to reform the provincial tax structure, encourage the adoption of electric vehicles and streamline revenue collection mechanisms.
