The government of Balochistan has introduced a new tax for businesses providing car rental services in the province. The move aims to expand the tax base and improve revenue collection. Officials say the step will also help regulate the growing rent-a-car sector in Balochistan.
The decision has been implemented by the Balochistan Revenue Authority (BRA). The authority has imposed an 8% sales tax on rent-a-car and automobile rental services operating across Balochistan.
Officials explained that the tax was introduced through amendments to the Balochistan Sales Tax on Services Act, 2015. The amendments were approved under the Finance Act, 2025. Under the revised framework, vehicle rental services now fall under the category that must pay an 8% sales tax.
The BRA has also made registration mandatory for all businesses operating in the sector. Companies offering rent-a-car services must register with the authority before continuing their operations in Balochistan.
Officials said registered businesses must also submit tax returns within the deadlines set by law. These requirements apply to both small operators and larger companies providing rental vehicles in the province.
The authority warned that strict action will be taken against businesses that fail to comply. Companies that do not register or pay the required tax may face penalties. These penalties include fines and other legal measures allowed under the law.
To ensure enforcement, the BRA has increased monitoring activities across Balochistan. Special inspection teams have been formed to check commercial areas and business centers in different districts.
These teams will identify rent-a-car businesses that are operating without registration. The goal is to bring such operators into the tax system and ensure fair competition in the sector.
Officials say the policy will help create a more transparent business environment in Balochistan. By expanding the tax net, the government hopes to improve revenue collection from the services sector.
The BRA also highlighted its role in the province’s finances. According to officials, the authority contributes more than 80% of the total provincial revenue.
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This revenue is considered essential for development projects and public services. Authorities believe stronger tax compliance will support economic growth and infrastructure development across Balochistan in the coming years.
