Proposed Budgetary Changes in Islamabad Capital Territory (Tax on Services)

  • Schedule of taxable services has been revised to make the same at par with the sales tax levied on such services under the respective sales tax on services regimes. The new Schedule is as under:

S. No. Description PCT Heading, if applicable Rate of Tax
(1) (2) (3) (4)
1 Services provided or rendered by hotels, motels, guest houses, marriage halls and lawns (by whatever name called) including“pandal” and “shamiana” services, clubs including race clubs, and caterers. 9801.10009801.30009801.40009801.5000


2 Advertisement on television and radio, excluding advertisements–(a) sponsored by an agency of the Federal or Provincial Government for health education;(b) sponsored by the Population Welfare Division relating to educational promotion campaign;(c) financed out of funds provided by a Government under grant-in-aid agreement; and

(d) conveying public service messages, if telecast on television by the World Wide Fund for Nature (WWF) or United Nations Children’s Fund (UNICEF)

9802.1000and9802.2000 16%
3 Services provided by persons authorized to transact business on behalf of others–(a) stevedore;(b) customs agents; and(c) ship chandlers. 9805.20009805.4000and9805.8000 16%
4 Courier services and cargo services by road provided by courier companies 9808.00009804.9000 16%
5 Construction services, excluding:(i) construction projects (industrial and commercial) of the value (excluding actual and documented cost of land) not exceeding Rs. 50 million per annum.(ii) the cases where sales tax is otherwise paid as property developers or promoters.(iii) Government civil works including Cantonment Boards.

(iv) construction of industrial zones,

consular buildings and other organizations exempt from income tax.

(v) construction work under international tenders against foreign grants-in-aid.

(vi) Residential construction projects where the covered area does not exceed 10,000 square feet for houses and 20,000 square feet for apartments

9824.0000and9814.2000 16%
6 Services provided by property developers and promoters (including allied services) excluding the actual purchase value or documented cost of land. 9807.0000andrespective subheadings of heading 98.14 Rs.100 per square yard for land development,And Rs.50 persquare feet forbuilding construction
7 Services provided by persons engaged in contractual execution of work, excluding:(i) annual total value of the contractual works or supplies does not exceed Rs.50 million;(ii) the contract involving printing orsupplies of books. 9809.0000 16%
8 Services provided for personal care by beauty parlours, clinics and slimming clinics, body massage centres, pedicure centres; including cosmetic and plastic surgery by such parlours/clinics, but excluding:(i) annual turnover does not exceed Rs.3.6 million; or(ii) the facility of air-conditioning is not installed or available in the premises. 9810.00009821.4000 and 9821.5000 16%
9 Management consultancy services 9815.4000,9819.9300 16%
10 Services provided by freight forwarding agents, and packers and movers. 9805.3000,9819.1400 Sixteen per cent or Rs. 400 per bill of lading, whichever is higher
11 Services provided by software or IT-based system development consultants. 9815.6000 16%
12 Services provided by technical, scientific and engineering consultants 9815.5000 16%
13 Services provided by other consultants including but not limited to human resource and personnel development services; market research services and credit rating services. 9815.90009818.30009818.2000 16%
14 Services provided by tour operators and travel agents including all their allied services or facilities (other than Hajj and Umrah) 9805.51009805.50009803.9000 16%
15 Manpower recruitment agents including labour and manpower supplies. 9805.6000 16%
16 Services provided by security agencies 9818.1000 16%
17 Services provided by advertising agents 9805.7000 16%
18 Share transfer or depository agents including services provided through manual or electronic book-entry system used to record and maintain securities and to register the transfer of shares, securities and derivatives. 9805.9000 16%
19 Business support services. 9805.9200 16%
20 Services provided by fashion designers, whether relating to textile, leather, jewellery or other product regimes, including allied services, marketing, packing, delivery and display, etc. 9819.6000 16%
21 Services provided by architects, town planners and interior  decorators. 9814.10009814.9000 16%
22 Services provided in respect of rent-a-car. 9819.3000 16%
23 Services provided by specialized workshops or undertakings (autoworkshops; workshops for industrial machinery, construction and earth- moving machinery or other special purpose machinery etc; workshops for electric or electronic equipments or appliances etc. including computer hardware; car washing or similar service stations and other workshops). 98.20 16%
24 Services provided for specified purposes including fumigation services, maintenance and repair (including building and equipment maintenance and repair including after sale services) or cleaning services, janitorial services, redging or desilting services and other similar services etc. 98.22 16%
25 Services provided by underwriters, indenters, commission agents including brokers (other than stock) and auctioneers 9819.1100,9819.1200,9819.1300 16%
26 Services provided by laboratories other than services relating to pathological or diagnostic tests for patients. 98.17 16%
27 Services provided by health clubs, gyms, physical fitness centres, indoor sports and games centres and body or sauna massage centres 9821.1000 and9821.20009821.4000 16%
28 Services provided by laundries and dry cleaners. 9811.0000 16%
29 Services provided by cable TV operators. 9819.9000 16%
Technical analysis and testing services 9819.9400 16%
30 Services provided by TV or radio program producers or production houses. 16%
31 Transportation through pipeline and conduit services. 16%
32 fund and asset (including investment) management services. 16%
33 Services provided by inland port operators (including airports and dry ports) and allied services provided at ports and services provided by terminal operators including services in respect of public bonded warehouses, excluding the amountsreceived by way of fee under any law or bylaw 16%
34 Technical inspection and certification services and quality control (standards’ certification) services 16%
35 Erection, commissioning and installation services. 16%
36 Event management services 16%
37 Valuation services (including competency and eligibility testing services), 16%
38 Exhibition or convention services 16%
39 Services provided in respect of mining of minerals, oil & gas including related surveys and allied activities 16%
40 Services provided by property dealers and realtors. 16%
41 Call centres. 18.5%
42 Services provided by car/automobile 16%

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