Budget 2023-24 proposes 15% tax on hotels, wedding halls and catering services in Islamabad

ISLAMABAD – The federal government has imposed 15 percent tax on hotels, guest houses, farmhouses, wedding halls, clubs and catering services within the limits of Islamabad.

The new tax has been proposed in the budget for fiscal year 2023-24 presented by Finance Minister Ishaq Dar on Friday with total outlay of Rs14,460 billion. 

The government has proposed five percent tax on payments made through credit cards and mobile wallet QR code and 15% on cash payments at restaurants, coffee shops, food, ice cream parlour and others within the federal.

In this regard, the FBR has proposed amendments to Tax on Services Ordinance, 2001 through the Finance Bill 2023-24. 

Meanwhile, the tax rate on the provision of services of software and IT-based system development consultants has been reduced from 16% to 15%, while 15% tax has been imposed on the provision of electric and transmission services.