No New Taxes on Social Media Platforms: FBR

A senior official of the Federal Board of Revenue (FBR), who is preparing country’s budget for 2022-23, confirmed ProPakistani there are no new taxes under consideration on YouTube or other social media platforms. There were rumors online of new taxes on earnings from online platforms, i.e., YouTube, Facebook, freelance work etc. However, the FBR official clarified that these were mere rumors and that no such tax was being imposed. The FBR had notified September 1, 2021, as the effective date for the applicability of a two percent sales tax on the gross value of supplies on online marketplaces like Daraz, said the FBR official. Furthermore, the FBR had also issued SRO 984(I)/2021 for the imposition of withholding tax on the online marketplace under the eleventh schedule of the Sales Tax Act 1990. However, the sales tax is charged on online marketplaces like Daraz.com, etc. and are not imposed on YouTube, TikTok or freelance earnings.