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FBR Orders Hotels, Couriers and Other Services to Go Digital

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Legal Editorial Desk
FBR Orders Hotels, Couriers and Other Services to Go Digital
The Federal Board of Revenue (FBR) has made it mandatory for a large categories of service providers to integrate their sales tax businesses with the Board’s computerized system for real-time reporting of the provision of services from July 1, 2025. This has been mentioned in the updated Islamabad Capital Territory (Tax on Services) Ordinance, 2001. According to the updated Ordinance vide Finance Act 2025, from such date and in such mode and manner, as may be prescribed through a general order by the Board, any service provider as mentioned in Table 1 and Table 2 of the Schedule shall integrate his businesses with the Board’s computerized system for real-time reporting of provision of services. Table-1 cover 60 different types of services including services provided or rendered by hotels, motels, guest houses, farmhouses, marriage halls, lawns, clubs and caterers, courier services and cargo services by road provided by courier companies; construction services and other services specified in the Islamabad Capital Territory (Tax on Services) Ordinance, 2001. Table 2 also covers different categories of services. Notwithstanding the provisions of this section, the Board may, whenever deem necessary, subject to such conditions, restrictions and limitations, specify a Negative List of services exempt from tax under this Ordinance in Table-3 to the Schedule, by notification in the official Gazette, Islamabad Capital Territory (Tax on Services) Ordinance, 2001 added.
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