Proposed Sales Tax in Islamabad
The federal government is planning to introduce a sales tax on ride-hailing services in Islamabad for the fiscal year 2025-26 budget.
FBR’s Tax Plan
According to sources, the Federal Board of Revenue (FBR) is considering a 4 percent sales tax on cab aggregators operating in the Islamabad Capital Territory for the FY26 budget.
Current Tax Scenario
- No sales tax is currently imposed on cab aggregators in the federal capital.
- Provincial authorities, including Punjab, Sindh Revenue Board, and KP Revenue Authority, already charge a 5 percent sales tax on ride-hailing services.
Previous Proposal
The FBR had proposed a sales tax on ride-hailing services in the current year’s budget, but it was removed from the finance bill at the last moment.
Ride-Hailing Services in Pakistan
Popular ride-hailing platforms in Pakistan include:
- InDrive
- Careem
- Bykea
- Jugnoo
- Yango
Market Leader
InDrive holds a dominant position in the domestic ride-hailing market with a 60 percent share.
