The federal government is considering imposing a 4% sales tax on ride-hailing services operating in Islamabad as part of the upcoming FY 2025-26 budget, according to sources reported by ProPakistani.
Currently, no sales tax is levied on online taxi services in the federal capital. In contrast, provincial authorities in Punjab, Sindh, and Khyber Pakhtunkhwa already charge a 5% sales tax on such services.
Sources indicate that the Federal Board of Revenue (FBR) had proposed the tax in the current fiscal year’s budget as well, but the measure was removed at the last moment from the Finance Bill.
If introduced, the new tax would apply to companies such as InDrive, Careem, Bykea, Jugnoo, and Yango, which operate in various cities across Pakistan, including Islamabad.
The proposal aims to broaden the tax base and align the federal capital with provincial tax practices, while generating additional revenue from the growing digital mobility sector.
