The Federal Government is considering jacking up taxes on freelancers and content creators earning from social media platforms like YouTube and TikTok. According to the details, the Federal Government is considering imposing 30% tax on freelancers and content creators in the upcoming budget for the fiscal year FY2022-23.
The upcoming budget would withdraw the perks and subsidies given to freelancers exporting their IT services and bringing much needed foreign exchange to the country, which would be a huge setback for the entire industry as it will exacerbate finance condition of lower income people.
According to the details, a number of suggestions have been given which would be incorporated in the next budget, including increased tax on income of more than one million rupees per year, earnings from freelancing, online games, YouTube, TikTok, and other social media platforms.
Furthermore, it is being reported that offices of online platforms and social media apps would be set up in Pakistan and earnings from them would be made in in local Pakistani currency. The decision to increase taxes on freelancers and content creators has been made because of strict conditions set by the International Monetary Fund (IMF) in order to restore the loan programme.
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