The federal government is considering the introduction of a 4 percent sales tax on ride-hailing services operating in Islamabad, potentially as part of the upcoming fiscal year 2025-26 budget.
The Federal Board of Revenue (FBR) is actively weighing the proposal, which would target cab aggregators in the Islamabad Capital Territory. Currently, these services are not subject to any sales tax in the federal capital, unlike in the provinces where similar services are already taxed.
Provincial revenue authorities—including the Punjab Revenue Authority, Sindh Revenue Board, and Khyber Pakhtunkhwa Revenue Authority—currently impose a 5 percent sales tax on ride-hailing services within their respective jurisdictions.
Insiders noted that the FBR had previously floated the idea of taxing ride-hailing services during the current year’s budget discussions, but the proposal was ultimately dropped from the finance bill at the last minute.
Pakistan’s ride-hailing market features several major players, including InDrive, Careem, Bykea, Jugnoo, and Yango. Among these, InDrive holds a commanding 60 percent share of the domestic market.
