Business
Govt seeks 5pc tax on social media earnings in budget 26-27
The federal government has proposed in the Finance Bill 2026 to impose a 5% withholding tax on revenue received by social media influencers through digital platforms like YouTube, Facebook, Instagram and TikTok.
The draft legislation states that banks and non-banking financial institutions will have to deduct the tax anytime payments related to social media profits are credited or received in an account.
The bill defines a social media influencer as someone who earns money through social media. The plan includes payments for domestic remittances, transfers and direct credits to accounts tied to digital content development and online activity.
The proposed framework proposes that resident individuals active tax payers will be subject to 5% withholding tax on their social media revenue. Non-resident persons and entities that earn revenue through such platforms will be subject to the same rate.
The Finance Bill provides that the withholding tax shall be the minimum tax liability for resident tax payers. Where there is no permanent establishment of a non-resident in Pakistan, the sum so deducted shall be deemed to be a final tax.
The plan is part of the federal budget for FY 2026-27, which was presented by Finance Minister Muhammad Aurangzeb in the National Assembly on Friday.
The government has recommended a total budget outlay of Rs18.771 trillion including Rs8.054 trillion for debt servicing Rs3 trillion for security spending and Rs1 trillion for the federal development project.
For a three-day period starting on August 1, the government has announced a slight decrease in the cost of petroleum products, including gasoline and high-speed diesel (HSD).
The Petroleum Division said that the price of high-speed diesel has been lowered by Rs0.66 per litre, resulting in a new retail price of Rs392.38 per litre.
Additionally, the price of gasoline has been lowered by Rs0.12 per litre, to Rs336.03 per litre.
According to the letter, the updated pricing will go into effect between August 1 and August 3.
According to the administration, the little cut was taken after accounting for both domestic economic and budgetary factors as well as global oil costs.
In light of persistent economic pressures and swings in the world’s crude oil markets, the most recent adjustment provides customers with little respite.
The most recent update comes after the government regularly reviews fuel costs, which are decided by the currency rate, domestic tax laws, and global market trends.
In July 2026, the Federal Board of Revenue (FBR) collected Rs820 billion in net revenue, exceeding the monthly target by Rs40 billion.
The July tax collection target was set at Rs780 billion, but net receipts came in at Rs820 billion, according to FBR documents.
According to the papers, gross tax collections for the month totaled Rs918 billion. Net receipts were Rs820 billion after Rs98 billion of this sum was reimbursed to taxpayers under different refund categories.
Gross collections under the income tax head was Rs343 billion. Net income tax revenues fell short of the objective of Rs323 billion, coming in at Rs308 billion after the payment of Rs35 billion in refunds.
In July, sales tax collections came to Rs413 billion, while sales tax refunds were Rs53 billion.
The Federal Excise Duty (FED) collected Rs48 billion, compared to the objective of Rs47 billion, according to the FBR.
In July 2026, customs duty receipts totaled Rs115 billion, surpassing the designated objective of Rs105 billion by Rs10 billion.
Foreign investors became net purchasers at the Pakistan Stock Exchange (PSX) for the first time in almost two years, indicating restored confidence in the country’s capital market at the beginning of the current fiscal year.
According to official data, foreign investors invested $34.4 million in the PSX in July 2026, a significant reversal from June 2026 when they sold $180 million worth of shares and pulled money out of the market.
The data showed that foreign investors were net buyers for the first time in nearly 23 months, with banking and exploration companies receiving the greatest investment in the month.
Foreign investors made investments in the banking sector to the tune of $13.8 million during July, while investments in exploration businesses amounted to $6.7 million.
However, the data also revealed that international investors preferred to dispose of cement stocks over the same period.
An earthquake with a magnitude of 4.7 occurs close to Naples, Italy, resulting in damage and disruptions.
For three days, Pakistan lowers the price of petrol and diesel.
FBR surpasses its July revenue goal by Rs40 billion.
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