Islamabad Capital Territory (Tax on services) Ordinance, 2001

Proposed Amendments

Table 2 – Insertion

The bill seeks to insert a new table under Islamabad Capital Territory (Tax on Services) Ordinance, 2001 for the services that are proposed to be taxed at the reduced rate, earlier these services were charged to tax at the rate of sixteen percent;

Following services have been inserted under the table 2 of the Ordinance,

Zero Rated Services

Construction services and services provided by property dealers, realtors and promoters (including allied services) relating to low cost housing schemes sponsored or approved by Naya Pakistan Housing and Development Authority or under Government’s Ehsaas programme shall be charged to tax at rate of zero percent subject to the condition that no input tax adjustment or refund shall be admissible.

Reduced Rate Services

Services provided by beauty parlours, clinics and slimming clinics, body massage centres, pedicure centres, including cosmetic and plastic surgery by such parlours / clinics, tour operators and travel agents including all their allied services or facilities (other than Hajj and Umrah), specialized workshops or undertakings, health clubs, gyms, physical fitness centres, indoor sports and games centres and body or sauna massage centres, laundries and dry cleaners, car / automobile dealers, marriage halls and lawns, by whatever name called, including “pandal” and “shamiana” services and caterers and IT services and IT-enabled services five per cent subject to the condition that no input tax adjustment or refund shall be admissible except for IT services.

Reduced or fixed tax

Services provided by freight forwarding agents, and packers and movers shall now be taxed at Five percent or Rs. 1000 per bill of lading, whichever is higher subject to the condition that no input tax adjustment or refund shall be admissible.