The federal government has introduced a new tax policy in Islamabad, which includes a 15 percent tax on various establishments such as hotels, guest houses, farmhouses, wedding halls, clubs, and catering services. This tax proposal was presented by Finance Minister Ishaq Dar as part of the budget for the fiscal year 2023-24, with a total budget of Rs14,460 billion.
Furthermore, the government has suggested a five percent tax on payments made through credit cards and mobile wallet QR codes. Cash payments at restaurants, coffee shops, food outlets, and ice cream parlors within the federal limits will be subject to a 15% tax.
To implement these tax changes, the Federal Board of Revenue (FBR) has proposed amendments to the Tax on Services Ordinance, 2001 through the Finance Bill 2023-24.
Additionally, there have been adjustments in tax rates for specific services. The tax rate for software and IT-based system development consultants has been reduced from 16% to 15%. Moreover, a 15% tax has been introduced on the provision of electric and transmission services.
