Content creators alarmed over fresh taxation measures

ISLAMABAD: Content creators and influencers working across digital platforms have urged the government not to introduce fresh taxes on their income in the upcoming budget, saying the sector is earning foreign exchange for the country and producing informative and knowledge-based material for audiences in Pakistan and abroad.

Stakeholders also called for a classification framework for creators and influencers based on the nature of their work and earnings. They proposed that those producing responsible, educational and ethical content should be supported through tax relief and other policy measures.

The demand comes after the government is considering taxation measures targeting content creators and influencers who generate significant income through social media platforms and corporate partnerships. The latest State Bank of Pakistan data shows Pakistan’s freelancers, digital workers and content creators have brought in nearly $1 billion in foreign exchange during FY2025-26 so far.

Senior investigative journalist and YouTube creator Mehreen Iftikhar said additional taxation on those producing news analysis, podcasts and informative videos would discourage independent digital journalism. She said many journalists are underpaid by media organisations and often face salary delays, leading more of them to launch channels on YouTube and other online platforms to offer independent perspectives while building a sustainable income stream for themselves and their teams.

Iftikhar said creators continue to spend heavily on equipment, technology and production capacity to grow and monetise their platforms. She said further taxes could reduce incentives for producing educational material, informative content and independent analysis, adding that digital creators have become an important part of Pakistan’s digital economy by generating foreign exchange and creating jobs in production, editing, marketing and related services.

Attributing the diversity of the sector, Pakistan has a large number of bloggers, vloggers, influencers, YouTubers and TikTokers producing podcasts, news, analysis and infotainment, while only a smaller number focus on entertainment content described as indecent or immoral. Many creators operate independently across platforms, while some media outlets also run news websites and YouTube channels with sizeable teams.

Iftikhar said these digital creators are already paying income tax, while commercial, sponsored and endorsement posts on digital platforms also contribute to tax collection through general sales tax.

"Don't discourage us," she said in a direct appeal.

Senior researcher and content producer Fahad Kehar said taxes are already deducted when income flows into bank accounts from digital platforms. He said payment structures used by social media companies are complex and differ from platform to platform, and argued that any new tax benchmark tied to subscriber counts or views would be unreasonable and would discourage those contributing to the economy. He also said Pakistani creators earn much less than their counterparts in other countries, while local authorities are not doing enough to support digital publishers and help bring in foreign exchange.

Pakistan Freelancers Association chairman Ibrahim Amin said the government should avoid imposing extra taxes on creators producing skills-based material, educational content, infotainment, news and analysis. He said PAFLA supports digital workers, including YouTubers and influencers, who contribute to the economy while respecting cultural values and relevant laws and regulations.

Amin said Pakistan has the world’s fourth-largest freelancing community, with about three million freelancers. He added that many of them continue to face substantial losses because of high transaction charges and deductions by international freelancing platforms and payment service providers.

Stakeholders urged policymakers to adopt what they described as a balanced approach that supports the expansion of the digital content sector while also encouraging responsible content creation and compliance with existing rules.