Digital artists, content creators and influencers have called on the government to review the taxation regime applicable to their earnings, arguing that a more balanced tax framework could encourage digital entrepreneurship, attract foreign exchange and create opportunities for emerging talent.

They said earnings from social-media platforms depend on several factors beyond views and subscriber numbers, including audience location, advertising demand, platform policies, production costs and the nature of the content. They maintained that taxation based primarily on gross receipts could place a disproportionate burden on creators, particularly those operating with high production costs or irregular income.

The Federal Board of Revenue (FBR) introduced a withholding-tax regime on revenues received by digital content creators and social-media influencers from platforms including YouTube, Facebook, Instagram and TikTok. Under Section 154B of the Income Tax Ordinance, 2001, banks and non-banking financial institutions are required to deduct tax when such revenues are credited or received. FBR has described the measure as part of the government's efforts to bring digital income into the formal tax system.

Sher Muhammad, commonly known as Sher Khumber, a Pakistani music-industry entrepreneur and digital music and rights specialist, said taxation should not become a barrier to the growth of the country's content-creation industry, particularly for artists seeking to build audiences and monetise their work through international digital platforms.

He said the emergence of artificial intelligence was already creating new challenges for the revenue streams of Pakistani artists, particularly in the absence of comprehensive digital-rights protection, while additional taxation could further squeeze the earnings of content creators.

These days, technology kills technology so fast that human talent with cultural and aesthetic aspects could generate unique content for digital creators, who could also promote local culture worldwide, Sher Muhammad added. "Pakistani cultural content, including poetry and music, is receiving appreciation worldwide through social-media platforms. However, many talented artists do not have the technical expertise or resources required to optimise the monetisation of their content," he said.

Muhammad urged the authorities to consider a more supportive tax framework that recognises the costs and challenges associated with producing and monetising digital content. He also said that low tax will help Pakistan's artists to establish digital studios to promote their cultural and local music through social media platforms and video-sharing websites.

FBR introduced a new mechanism for taxing income earned from remunerative social media content, setting a minimum revenue benchmark of Rs195 ($0.70) for every 1,000 YouTube video views and allowing taxpayers to claim expenses of up to 30% of total revenue. The Federal Board of Revenue (FBR) notified the rules through SRO 642(I)/2026 and SRO 1641(I)/2026, establishing separate procedures for residents and non-residents earning income through social media platforms.

Dr Noman Ahmed Said, CEO of SI Global Solutions, said content creators should contribute to Pakistan's tax base, but the taxation system should recognise their production costs and irregular income patterns. He noted that withholding tax on social-media platform receipts could be substantial for creators operating on thin margins.

He also called for reconsideration of the 30% expense ceiling contained in FBR's special procedure for taxation of remunerative social-media content. FBR's rules provide for expenses of up to 30% of total revenue in the specified calculation of income.

There is no reliable national average for digital content creators in Pakistan, because earnings are heavily skewed and mostly unreported. Most creators earn little or nothing. Those who monetise typically fall in a wide band.

Salaried content-creator roles in Karachi show a median of about Rs60,000 a month, with a common range of Rs30,000-80,000. Independent creators depend more on brand deals than platform ads. In 2026 rate guides, a nano creator (under 10,000 followers) may charge roughly Rs500 to Rs25,000 per post, a micro creator (10,000-100,000) about Rs5,000-150,000, and larger accounts several hundred thousand to over Rs1 million.

YouTube ad income is thin. Local estimates put 100,000 monthly views at about Rs5,000-20,000 and one million views at Rs50,000-200,000 or more, depending on niche and audience location. Mid-tier creators who combine ads, sponsorships and affiliates often report Rs50,000-400,000 a month. A small top-tier earns far more; the typical creator does not.

"Pakistan should recognise documented business costs, simplify compliance and consider targeted relief for emerging creators," he said. He cautioned that an excessive tax burden could affect investment, employment and foreign-exchange earnings from the digital economy. "However, neither the nationwide tax revenue gain nor the potential economic loss can responsibly be quantified without reliable sector data. FBR should consult creators and other stakeholders and publish an impact assessment," Dr Noman said.

The government seeks to expand the formal tax base while Pakistan's digital economy continues to generate income through international platforms. FBR has also established a Lifestyle Monitoring Cell that uses artificial intelligence and social-media intelligence to identify potential discrepancies between publicly observable lifestyles and declared income and assets.