The Federal Board of Revenue (FBR) is moving forward with plans to impose taxes on the income of TikTok content creators, according to a Senate committee meeting on Wednesday. Senator Faisal Vawda revealed that the FBR is finalizing a strategy to tax TikTokers, with Punjab expected to contribute the largest share of recoverable taxes. He suggested that the FBR focus on enforcing the tax in the province.
The Senate Standing Committee on Finance and Revenue, chaired by Senator Saleem Mandviwalla, also reviewed the Pakistan Remittances Initiative (PRI) and the government’s remittance subsidy policy. The State Bank of Pakistan’s Deputy Governor explained that the remittance subsidy, introduced in 2020 at 20 Saudi riyals per transaction, had increased to 30 riyals in 2024 but was recently reduced back to 20 riyals.
Senator Vawda criticized the reduction, calling the policy a “scandal” and alleging that commercial banks were benefiting more than the intended recipients. He requested an inquiry to recover the misappropriated funds.
Mandviwalla also expressed concerns that while the PRI was meant to support overseas Pakistanis, the financial benefits were not reaching them. Instead, banks and money transfer operators appeared to be absorbing the subsidy. He called for a review of transaction costs to ensure remittance beneficiaries received the full benefit.
In response, Minister of State for Finance and Revenue Bilal Azhar Kayani assured that the issue would be addressed with consultation from the State Bank and other stakeholders to improve the system and close gaps in implementation. Additionally, the FBR chief informed the committee that a Presidential Order issued on July 16, 2025, is under litigation in the Sindh High Court, preventing its full implementation.
