The SRB has allowed 58 restaurants and hotels in Karachi to again deduct 15% service tax on debit and credit card payments, down from the previous 15%. The move is part of the Sindh Budget, which aimed to ease the financial burden on consumers while dining out.
Earlier, tax on debit and credit card payments was reduced from 15% to 8% in Sindh.
The SRB officials also clarified that the facility has been provided to adjust the input tax payments of the restaurant. This measure is intended to simplify the tax process and ensure that businesses can effectively manage their tax obligations.
Despite the abolition of this tax regime, only a small number of restaurants received permission to abolish the reduced tax rate.
