ISLAMABAD: The Federal Board of Revenue (FBR) is preparing to bring TikTok content creators into the tax net, signaling a fresh move to regulate digital earnings in Pakistan’s booming social media economy.
The development came during a briefing to the Senate Standing Committee on Finance and Revenue, where officials confirmed that a framework for taxing TikTok-generated income is being finalized. Committee member Senator Faisal Vawda highlighted that Punjab, home to the largest number of creators, will likely yield the highest share of tax recoveries, and urged that enforcement begin there.
The committee meeting, chaired by Senator Saleem Mandviwalla, also discussed the Pakistan Remittances Initiative (PRI) and raised concerns that the remittance subsidy, meant to facilitate overseas Pakistanis, was disproportionately benefiting banks instead of the intended beneficiaries.
Minister of State for Finance Bilal Azhar Kayani assured lawmakers that any taxation on TikTokers would be implemented in consultation with stakeholders. He emphasized that the government’s priority was to ensure fairness, transparency, and minimal disruption to the digital economy, while also tapping into new revenue sources.
As TikTok continues to expand its footprint in Pakistan, monetization opportunities for creators have surged. However, with this growth comes increased scrutiny from regulators, who are seeking to strike a balance between encouraging digital entrepreneurship and ensuring compliance with tax obligations.
This story has been reported by PakTribune. All rights reserved.