The Sindh authorities have withdrawn the reduced tax rates on meals in restaurants paid for with debit and credit cards, as the Sindh Revenue Board (SRB) has rolled back the low tax facility.
The SRB has allowed 58 restaurants and hotels in Karachi to once again deduct 15% service tax on debit and credit card payments, down from the previous 15%. This move comes as part of the Sindh budget, which aimed to ease the financial burden on consumers dining out.
Previously, in Sindh, the tax on debit and credit card payments was reduced from 15% to 8%.
SRB officials have also clarified that the facility was provided for input adjustment of tax payments on restaurant. This measure is intended to simplify the tax process and ensure that businesses can efficiently manage their tax obligations.
Despite the reversal of this tax facility, only a small number of restaurants have received permission to withdraw the reduced tax rate.
