The Federal Board of Revenue (FBR) has introduced new General Sales Tax (GST) rates on various services in the Islamabad Capital Territory (ICT), with rates set at 5% and 15%, effective July 1, 2025.
Under the new framework, most services will be taxed at 15%, including those provided by hotels, motels, guest houses, farmhouses, marriage halls, lawns, and clubs.
For restaurant services, including cafes and eateries, a 5% GST will apply if payments are made via debit or credit cards, mobile wallets, or QR scanning. However, services paid in cash will be subject to a 15% tax.
The FBR has also implemented a 15% GST on television and radio advertisements, excluding certain government-sponsored campaigns.
Other services, such as those by stevedores, customs agents, ship chandlers, courier services, and cargo services by road, will also be taxed at 15%.
Construction services will be taxed at 15%, with exemptions for small-scale projects under Rs50 million, government civil works, and certain international projects.Â
Additionally, property developers and promoters will face a per-square-yard charge for land development and a per-square-foot charge for building construction.
Services provided by beauty parlours, clinics, and other personal care facilities will generally be taxed at 15%, with exceptions for smaller businesses or those without air conditioning, which will be taxed at 5% under specific conditions.
The new tax structure also applies to a range of professional services, including management consultancy, freight forwarding, IT services, technical consulting, and security agencies, all taxed at 15%.
