Islamabad, May 10, 2025 – Sindh has emerged as the top-performing province in Pakistan in terms of sales tax collection on services during the first nine months (July–March) of the current fiscal year 2024–25, showcasing a robust growth of 25%.
(more…)Tag: sales tax on services
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Provinces Collect Rs 122 Billion in Services Sales Tax for 1QFY25
Karachi, November 15, 2024 – Pakistan’s provincial governments have collectively gathered Rs 122 billion in sales tax on services during the first quarter (July – September) of fiscal year 2024-25, according to data released by the federal finance ministry.
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Provinces Collect Rs 230 Billion in Sales Tax in 1HFY24
Karachi, February 2, 2024 – The provinces of Pakistan have recorded an impressive collection of Rs 230 billion as sales tax on services during the first half (July – December) of fiscal year 2023-24, as per official data released by the federal finance ministry.
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Pakistan Collects Rs 417 Billion as Sales Tax on Services During FY23
Karachi, August 22, 2023 – Pakistan has achieved a significant milestone by collecting a total of Rs 417 billion as sales tax on services during the fiscal year 2022-23, as disclosed by official documents on Tuesday.
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Sales Tax Reduced to 5% for Islamabad Restaurants
Islamabad, July 23, 2023 – In a move to promote digital transactions and bolster tax compliance, the Federal Board of Revenue (FBR) has announced a significant reduction in the sales tax rate for restaurants in Islamabad.
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Beauty Parlors in Islamabad Required to Pay 15% Sales Tax on Services
In a recent development, beauty parlors and beauty clinics operating within the jurisdiction of Islamabad Capital Territory (ICT) are now obligated to pay a 15 percent sales tax on services, as per updated laws issued by the Federal Board of Revenue (FBR).
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IT Services Face 15% Sales Tax Imposition in Islamabad
Islamabad, July 4, 2023: The Federal Board of Revenue (FBR) has mandated a 15 percent sales tax on IT services and IT-enabled services within the jurisdiction of Islamabad, the capital city of Pakistan. This decision, effective from July 1, 2023, aims to enhance tax revenue collection in the IT sector.
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FBR Enforces 15% Sales Tax on Services Provided by Hotels in Islamabad
Islamabad, July 4, 2023: The Federal Board of Revenue (FBR) has recently implemented a 15 percent sales tax on various services offered by hotels, clubs, and other establishments in Islamabad. This decision aims to enhance revenue collection and streamline taxation procedures within the hospitality sector.
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Dental practitioners directed to get sales tax registration
KARACHI: Sindh Revenue Board (SRB) has directed dental practitioners to get registered for sales tax to avoid penal action.
The SRB in a circular issued September 21, 2022, said that the services of cosmetic dental surgery, orthodontics, aesthetic dentistry and such other cosmetic and aesthetic dental procedures are taxable services under tariff heading 9842.0000 of the Second Schedule to the Sindh Sales Tax on Services Act 2011 as per the definition provided under section 2 (29A) of the Act, 2011.
READ MORE: FBR advised to fix glitches for smooth filing of income tax returns
All Dental Practitioners providing the aforesaid taxable services are therefore advised to get e-registered with SRB by visiting www.e.srb.gos.pk and following the step by step procedure after entering the SNTN.
The service providers are also directed to charge, levy, and collect due Sindh sales tax at 13 per cent on the aforesaid taxable services and deposit the same in Sindh Government’s head of account “B-02384” in the prescribed manner.
READ MORE: Tax rates on profit from bank deposits during year 2022/2023
It further said that e-deposit the due amount of SST in any SRB-authorized branch of NBP by 15th of the month following the tax period to which it relates.
The dental practitioners are also advised e-file true and correct Sindh sales tax returns in Form SST-03 as prescribed under section 30 of the Act, 2011 by 18th of the month following the tax period to which it relates.
READ MORE: Up to 70% income tax imposed on dividends for year 2022-2023
For Example: Return filing and SST payment for the month of September is due on 15th and 18th of October, respectively.
The SRB said that full and timely compliance of above provision of law is expected and will be appreciated to avoid any penal action and legal consequences by the board.
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Foodpanda welcomes PRA tax concession to homechefs
LAHORE: Foodpanda, an online food delivery platform, has welcomed the reduction in sales tax by Punjab Revenue Authority (PRA) to homechefs – people operating from their homes.
In order to create a favorable business environment, the PRA decided to reduce sales tax on services being charged on commissions for home-based chefs.
The rebate reduced sales tax from 16 per cent to 5 per cent, allowing better profitability and growth potential for home chefs operating on online food delivery platforms such as foodpanda.
Home chefs are essentially people operating out of their home kitchens who sell food through online platforms such as foodpanda. The online food delivery company currently has 5,000+ registered home chefs who have been taken on board after stringent routine checks for food hygiene, quality, safety, packaging, etc. The company’s aim is to increase the home chefs base in the next two years and take it up to 100,000 registered home chefs.
Nauman Sikandar, CEO foodpanda, while sharing his thoughts said: “A big thank you to the Punjab Revenue Authority (PRA) from foodpanda and our home chefs. The reduction in sales tax being charged on commissions for home-based chefs comes as a welcome respite.
“This move will help grow a new sector which has significant potential for financial and economic inclusion, specifically women economic empowerment. It would be ideal that other provinces also follow suit and implement the same for home chefs.”
Shahzadi Asghar, a registered home chef at foodpanda, while sharing her gratitude said, “It’s very difficult to do business in today’s situation, that too a home-based business. Thanks to foodpanda and PRA that sales tax is now reduced by 11 per cent which in turn has significantly improved our margins. I am now thinking to expand my food venture with this favorable initiative.”
The visionary step by the Punjab Government must be supported by other provinces as the sector continues to grow exponentially across the country.