A 5% withholding tax has been imposed on social media influencers in the budget. According to the Finance Bill, a 5% withholding tax will be applied on income generated from social media platforms in the next fiscal year. The tax will apply to earnings from YouTube, Facebook, TikTok and Instagram.
Banks will deduct the tax directly from the accounts of social media influencers when payments are received.
According to the Finance Bill, a large-scale reduction in customs tariffs has also been announced. In the upcoming fiscal year, customs duties on tariff lines will be reduced. The 20% customs duty has been reduced to 15% and 10%.
It further states that on 449 tariff lines, the additional customs duty has been reduced from 6% to 4% while on 2,107 tariff lines it has been reduced from 4% to 2%. Additional customs duty has been completely removed on 569 items in the upcoming fiscal year, while the maximum rate of regulatory duty on 359 tariff lines has been set at 20%.
Exemption from customs duty has been given on raw materials used in cancer treatment. Customs, additional and regulatory duties on agricultural machinery have been abolished. Moreover, customs duty on special construction vehicles has been reduced from 20% to 10%.
