FBR Clarifies New Tax Rules for Social Media Creators: Rs195 Per 1,000 Views Is a Benchmark, Not a Final Verdict

The Federal Board of Revenue (FBR) has clarified that its Rs195-per-1,000-views figure for monetized YouTube content is a benchmark for tax assessment and not a final determination of a creator’s actual earnings. If your actual income is lower, you can present evidence, such as platform payout statements, bank receipts and other relevant documents, to the relevant Commissioner, who will assess your tax on actual income. An FBR spokesperson said in a statement on X, “Rs195 per 1,000 views is a benchmark, not a final verdict.”

Free Products and Gifts Count as Income

The FBR also clarified that remuneration is not limited to cash payments. Free products, gifts and other benefits received in return for social media content can be treated as income under the applicable tax rules.

Expenses Can Be Deducted

Creators can deduct expenses of up to 30% when calculating taxable income under the new mechanism, subject to the applicable provisions.

Which Content Is Covered

The framework applies to remunerative or monetized content, not to posts that simply attract views without generating income.

Why the Mechanism Was Introduced

The mechanism is part of efforts to bring income generated through Pakistan’s growing digital and creator economy into the formal tax system. Creators earning through platforms and other forms of social media remuneration are required to declare their income under the relevant provisions of the Income Tax Ordinance.