04/07/2025
FBR Imposes 15% GST on Marriage Halls, Hotels, Clubs, Farmhouses in Islamabad
📢 Starting July 1, 2025, the Federal Board of Revenue (FBR) has introduced a 5% to 15% General Sales Tax (GST) on a wide range of services in the Islamabad Capital Territory.
Most services will now attract a 15% GST. This includes services offered by hotels, motels, guest houses, farmhouses, marriage halls, lawns, and clubs. Advertisement services on TV and radio will also be taxed at 15%, with certain exceptions for government or public interest campaigns.
Restaurants will see two tax rates based on payment methods. A 5% GST will apply to digital payments made via debit/credit cards or QR codes, with no input tax adjustment or refund. A 15% tax will apply if payment is made in cash.
Other services now subject to 15% GST include those provided by customs agents, stevedores, ship chandlers, courier companies, and road cargo services. Construction services will also face a 15% tax, although small-scale residential or commercial projects, government work, and specific foreign-funded projects are exempt.
Property developers and promoters will be charged at fixed rates: Rs. 100 per square yard for land development and Rs. 50 per square foot for construction (excluding land cost).
Personal care services such as beauty parlours, massage centres, and slimming clinics will also be taxed at 15%. However, non-air-conditioned setups or those with annual turnover under Rs. 3.6 million will be taxed at a reduced rate of 5% with no input tax credit.
Additional services now falling under the 15% GST include management consultancy, IT and IT-enabled services, engineering and scientific consultancy, freight forwarding, packers and movers, tour operators, travel agents (excluding Hajj and Umrah), security companies, and advertising agencies.
Stay updated and plan your finances accordingly as these changes take effect.
