Tax on YouTube and TikTok earnings to be increased by Government
The International Monetary Fund (IMF) has strictly demanded to end income tax exemptions in the upcoming budget. A government official on terms of remaining anonymous has told that no such proposal was under consideration. Sources have revealed that the government would increase tax on income earned through online gaming and social media applications including popular video sharing platform TikTok as well as on YouTube payments.
The proposal had been appearing since 2015 by FBR but the authorities decided not to follow through the proposal after serious backlash from concerned stakeholders as it was developing sector at that time and it would have restricted its growth. Now the estimated earnings from this sector through various social media applications are in millions and with the growth of this sector many companies have shown interest in opening local offices in the country.
The government has also asked these companies to open their offices locally and pay the fee lancers and online workers in local currency. Furthermore, it is suggested to increase tax payment on people earning more than ten million per year though social media.
