ISLAMABD: Prominent minority MNA Dr Ramesh Kumar Vankwani has urged the government to an-nounce attractive incentives for social media influencers before implementing tax deductions on their earnings.
While expressing his views on the introduction of a five percent tax on social media income in the Fed-eral Budget 2026-27, Dr. Vankwani stated that digital platforms such as YouTube, Facebook, Instagram, TikTok, and others have created new employment and income opportunities for thousands of Paki-stani youth. However, he noted that Pakistan’s digital economy is still in the initial stages of develop-ment, and imposing additional taxes at this time may discourage young content creators who, despite limited resources and without any government support, are seeking livelihoods through the internet.
Dr. Vankwani further observed that there is a growing global trend toward regulating the digital econ-omy.
“In many countries, social media influencers are recognized as regular taxpayers,” he said, adding that: “In the United States, YouTubers and digital content creators pay federal and state taxes on their commercial income, while in several other countries the earnings of digital creators are also subject to taxation.”
However, he emphasized that governments in many parts of the world do not merely collect taxes; they also provide a wide range of facilities and incentives to taxpayers. “In many countries, online cre-ators are allowed to claim video production costs, studio rent, camera equipment, internet charges, travel expenses, and other business-related expenditures as tax-deductible expenses,” he expressed.
He pointed out that several countries have established modern studios, creative hubs, and dedicated government support initiatives for content creators. Moreover, many governments facilitate digital entrepreneurship through simplified business registration procedures, low-interest loans on easy terms, technology grants, startup funding, podcast studio support, and specialized training programs.
“In some European nations, digital creators who become part of the formal tax system are also enti-tled to benefits such as social security, health insurance, and pension schemes,” he stated.
Dr. Vankwani acknowledged that the number of social media influencers, vloggers, YouTubers, and digital creators in Pakistan has grown significantly over the past few years, resulting in increasing in-flows of earnings in US dollars from overseas.
In this regard, he expressed concern that if social media influencers in Pakistan are subjected to exces-sive taxation and regulatory burdens, they may prefer to retain their earnings abroad through virtual bank accounts, digital wallets, or foreign financial platforms.
“In such a critical situation,” he warned, “the government may fail to achieve its projected tax revenue targets, whereas valuable foreign exchange that is currently entering Pakistan through local banking channels may no longer become part of the country’s financial system.”
Dr. Vankwani therefore reiterated his stance that attractive incentives and facilitative measures for social media influencers should be introduced before imposing stricter tax regulations.
This, according to him, would not only encourage Pakistani youth to fully utilize their talents in the digital sector but would also motivate them to keep bringing their online earnings in Pakistan without hesitation, there-by contributing to the country’s economic growth and foreign exchange reserves. –PR
