The federal government has proposed a series of new tax measures, including a withholding tax on social media influencers and digital content creators, while unveiling tariff reforms aimed at boosting exports and industrial competitiveness.
Officials of the Federal Board of Revenue (FBR), while briefing on the Finance Bill 2026, said the budget contains new revenue measures worth Rs664 billion.
According to FBR officials, the bulk of the additional revenue is expected to come through improved enforcement and compliance measures, while entirely new taxes are estimated to contribute between Rs100 billion and Rs150 billion.
One of the notable proposals in the budget is the imposition of a 5 percent withholding tax on social media platforms. The measure would apply to income earned by digital content creators and influencers using platforms such as YouTube, Facebook, Instagram and TikTok.
Under the proposal, banks and financial institutions will be responsible for collecting the withholding tax on earnings generated through these platforms.
Officials said the move is aimed at bringing the rapidly growing digital economy into the tax net and ensuring that online income is treated in the same manner as earnings from other sectors.
Alongside revenue measures, the government has announced a series of tariff reforms intended to promote exports, lower production costs and improve the competitiveness of domestic industries.
According to the Finance Bill, the government has proposed abolishing the 2 percent additional customs duty on 569 tariff lines.
The budget also proposes reducing the additional customs duty from 4 percent to 2 percent on 2,107 tariff lines.
Similarly, the additional customs duty on 449 tariff lines is proposed to be reduced from 6 percent to 4 percent.
The government has also proposed reducing regulatory duty to 20 percent on 359 tariff lines.
Officials said the tariff reforms are part of a broader strategy to rationalize import duties, facilitate industrial production and support export-oriented sectors by reducing the cost of raw materials and intermediate goods.
The proposed measures form part of the Finance Bill 2026, which will be debated in Parliament before final approval as part of the federal budget for fiscal year 2026-27.