Govt moves to tax online educators, digital academies

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MG News | June 19, 2025 at 01:55 PM GMT+05:00

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June 19, 2025 (MLN): The federal government has greenlit a new taxation framework targeting private online educational platforms and independent digital instructors, as authorities ramp up efforts to formalize high-revenue sectors operating outside the tax net.

FBR Chairman Rashid Mehmood Langrial disclosed that some online academies are generating revenues as high as Rs200 million per month, yet remain untaxed.

These institutions will now be integrated into the formal tax regime, he said.

The crackdown will also extend to individual educators monetizing online content, bringing them under the purview of personal income taxation, as per the press release issued.

Meanwhile, the Punjab University Academic Staff Association (PUASA) has urged the government to reconsider budget cuts to higher education, warning of financial stress at public universities.

The council passed a resolution urging the Punjab government to boost recurring grants and retain tax exemptions for faculty, which are reportedly at risk under current fiscal proposals.

Separately, a proposal to tax elite recreational clubs, including Islamabad Club, is also under review.

Committees suggested that such entities be taxed on surpluses exceeding their expenditures, in line with efforts to improve tax equity and widen the revenue base.

The measures indicate Islamabad’s broader push to tighten fiscal oversight and unlock untapped revenue from informal and high-income segments, ahead of upcoming budget execution and IMF compliance targets.

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