ISLAMABAD: The Federal Board of Revenue (FBR) has issued an updated Islamabad Capital Territory (Tax on Services) Ordinance, 2001 to charge 15 percent sales tax on services provided by the construction industry, hotels, motels, guest houses, and farmhouses within Islamabad from July 1, 2022.
The FBR issued the updated Ordinance 2001 on Friday.
Under the revised Islamabad Capital Territory (Tax on Services) Ordinance, 2001, it is expedient to provide for levy of sales tax on the services rendered or provided in the Islamabad Capital Territory and for matters ancillary thereto or connected therewith.
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A rate of 15 percent sales tax would be applicable on services provided or rendered by hotels, motels, guest houses, farmhouses, restaurants, marriage halls, lawns, clubs, and caterers. The sales tax would also be applicable on the services provided are rendered by hotels motels, guest houses and farmhouses. Services provided or rendered by restaurants. Services provided or rendered by marriage halls and lawns. Services provided or rendered by clubs. Services provided or rendered by carters, suppliers of food and drinks.
The 15 percent sales tax would be applicable on services provided by persons authorised to transact business on behalf of others including stevedore; customs agents, and ship chandlers.
The sales tax at the rate of 15 percent would also be applicable on courier services and cargo services by road provided by courier companies and construction services.
Copyright Business Recorder, 2023