The Federal Board of Revenue (FBR) has issued the updated Islamabad Capital Territory (Tax on Services) Ordinance, 2001 to collect a 15 percent sales tax on services provided for personal care by beauty parlors, clinics, and slimming clinics, body massage centers, pedicure centers; including cosmetic and plastic surgery by such parlors/clinics.
In this connection, the FBR issued the updated Ordinance on Friday to incorporate changes made through Finance Act 2022.
As per the amended Islamabad Capital Territory (Tax on Services) Ordinance, 2001, it is expedient to provide for the levy of sales tax on the services rendered or provided in the Islamabad Capital Territory and for matters ancillary thereto or connected therewith.
A rate of 15 percent sales tax would be applicable on services provided or rendered by hotels, motels, guest houses, farmhouses, restaurants, marriage halls, lawns, clubs, and caterers.
The 15 percent sales tax would be applicable on services provided by persons authorized to transact business on behalf of others including stevedores; customs agents and ship chandlers.
The sales tax at the rate of 15 percent would also be applicable on courier services and cargo services by road provided by courier companies and construction services.
Where the collected Tex should be utilize?