The Sindh government has clarified that there will be no reinstatement of the 15 percent service tax on debit and credit card payments at restaurants and cafes.
The Sindh Revenue Board (SRB) has dispelled rumors about a 15 percent sales tax being applied to services paid for with debit and credit cards at hotels and restaurants. An SRB spokesperson confirmed that the current sales tax rate for such transactions remains at 8 percent. According to the Sindh Finance Act, a 15 percent service tax applies to food bills paid in cash. However, when the bill is paid using a debit or credit card, the tax rate is reduced to 8 percent.
READ MORE: Market Anticipates SBP to Lower Key Interest Rate Next Week
This lower tax rate was originally introduced to encourage consumer spending and support the hospitality sector. The discount was intended to promote the use of digital transactions over cash payments, thereby improving the documentation of currency in circulation.
