Tax cut on bank card payments at restaurants reversed

The Sindh government reversed a prior decrease and reinstituted the higher tax rates on meals paid for with debit and credit cards.

The Sindh Revenue Board (SRB) has reintroduced a 15% service tax on such payments, up from the earlier reduced rate of 8%.

Moreover, this change is part of the Sindh budget’s adjustments, initially aimed at easing the financial load on consumers dining out.

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In addition, the SRB has authorised 58 restaurants and hotels in Karachi again to apply the 15% service tax on card transactions.

Furthermore, the reduction from 15% to 8% had been previously implemented to simplify tax payments and help businesses manage their obligations more efficiently.

Although the tax facility has been rolled back, only a few restaurants have been granted permission to apply the original tax rate.