MD ASADUZ ZAMAN

The government is planning to exempt individual content creators and freelancers from the existing 7.5 percent source tax in the 2026–27 budget, in a move aimed at supporting the country’s growing digital economy and encouraging online entrepreneurship.

Under the proposal, income earned through digital platforms such as YouTube, Facebook, TikTok and other online channels will no longer be subject to the source tax currently applied to remittances received from abroad, according to officials involved in budget preparations.

“A provision will be incorporated into the Finance Bill 2026 to provide this exemption under the existing source tax framework,” said a finance ministry official, requesting anonymity.

The National Board of Revenue may define a “content creator” as a person who produces content independently, meaning only individuals will qualify under this category. According to an official, media houses or other institutional entities will not be included within this definition.

At present, a 7.5 percent source tax is deducted from income remitted from abroad for services, revenue-sharing arrangements and similar activities under the Income Tax Act 2023.

Finance Minister Amir Khosru Mahmud Chowdhury is expected to formally propose the measure while presenting the national budget in parliament on June 11.

Officials said the proposal has already received in-principle approval from Prime Minister Tarique Rahman at a high-level meeting.