The service tax of fifteen percent on debit and credit card purchases at eateries and cafés has not been reinstituted by the Sindh government.
The Sindh Revenue Board has refuted reports that services purchased at restaurants and hotels using debit and credit cards will be subject to a 15 percent sales tax. According to a spokesman for the SRB, the real sales tax rate on these kinds of purchases is still 8%.
Meals bills paid with cash are subject to a 15 percent service tax under the Sindh Finance Act. Nevertheless, the tax rate is lowered to 8% if the payment is paid using a debit or credit card.
In the past, the tax was reduced to encourage consumers to spend more money and help the hotel sector. To strengthen the currency documentation in circulation, the discount was primarily intended to encourage consumers to switch from fiat cash to digital transactions.
