Islamabad, May 14, 2025: The Federal Government is likely to impose sales tax on Ride Hailing Services operating in Islamabad in fiscal year’s budget (2025-26).
The Federal Board of Revenue (FBR) is considering the introduction of a 4 percent tax on CAB operators in Islamabad Capital Territory.
Currently, there is no tax on the CAB Hailing Services operating in the federal capital.
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On the other hand, the Provincial Revenue Authorities, including Punjab, Sindh Revenue Board, and KP Revenue Authority, have already been charging 5 percent sales tax on services provided by ride-hailing services.
Sources said that FBR during the current year budget had also proposed the imposition of sales tax on services provided by ride-hailing services; however, later on, it was excluded from the finance bill at the eleventh hour.
In Pakistan, a number of ride-hailing services are operating in different cities, including InDrive, Careem, Uber, Bykea, Jugnoo, and B4U Cabs.
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However, InDrive dominates the domestic market with a 60 percent share hold.
Moreover, under the Islamabad Capital Territory (Tax on Services) Ordinance, 2001, the FBR is charging 15 percent sales tax on a wide range of services including Services provided or rendered by hotels, motels, guest houses, farmhouses.
Marriage halls, lawns, clubs and caterers; IT services and IT-enabled services and other services.
