FBR finalising plan to impose tax on TikTok content creators

The Federal Board of Revenue (FBR) is working on a plan to impose taxes on income generated by TikTok content creators, a Senate panel has been informed.

During a meeting of the Senate Standing Committee on Finance and Revenue at Parliament House, Senator Faisal Vawda told members that the FBR was finalising a plan for taxing TikTokers. He said the largest portion of recoverable taxes was expected from Punjab and urged the authority to begin enforcement from there.

The committee, chaired by Senator Saleem Mandviwalla, also reviewed the Pakistan Remittances Initiative (PRI) and the government’s subsidy policy on remittances. Deputy Governor of the State Bank of Pakistan briefed members that the subsidy, originally introduced in 2020 at 20 Saudi riyals per transaction, had been raised to 30 riyals in 2024 but was recently reduced back to 20.

Vawda strongly criticised the decision, calling it a “scandal” and alleging that commercial banks were reaping the primary benefits of the scheme. He demanded a formal inquiry and urged the FBR to recover the funds he claimed were misappropriated.

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Chairman Mandviwalla echoed the concerns, pointing out that the PRI was created to facilitate overseas Pakistanis, yet its benefits were not reaching them. Instead, he said, banks and money transfer operators were absorbing the subsidy. He called for reducing transaction costs so that beneficiaries in Pakistan could receive the full value of their remittances.

The committee instructed the Ministry of Finance to submit a detailed report on expenditure and reversals related to the subsidy over the past three to four years. It also recommended a comprehensive review of the PRI framework to improve transparency and prevent misuse.

Minister of State for Finance and Revenue Bilal Azhar Kayani assured the committee that the matter would be taken up with the State Bank and other stakeholders, stressing the need to streamline the mechanism and plug loopholes.