Reduced rate of sales tax on certain services under the Islamabad Capital Territory (Tax on Services) Ordinance, 2001

Vide SRO 495(I)/2016 dated 04.07.2016, the Federal Government directed that the following services shall be chargeable to reduced rate of 5%, subject to the condition that no input tax adjustment will be available against such services:

(i)  Construction services;
(ii)  Services provided by beauty parlours, clinics, sliming clinics, body massage centres, pedicure centres including cosmetic and plastic surgery;
(iii)  Services provided by travel agents and tour operators;
(iv)  Services provided by specialized workshops or undertakings (auto-workshops, workshops for industrial machinery, construction and earth moving machinery or other special purpose machinery etc.);
(v)  Services provided by health clubs, gyms, physical fitness centre etc;
(vi)  Services provided by laundries and dry cleaners;
(vii) Services provided by car/automobile dealers;
(viii) Services provided by freight forwarding agents and packers and movers will be subject to Rs. 1000/- per bill of lading.