The federal government is considering imposing a sales tax on ride-hailing services operating within Islamabad as part of the upcoming FY26 budget
According to insiders, the Federal Board of Revenue (FBR) is weighing a 4 percent sales tax on cab aggregators functioning in the Islamabad Capital Territory. Currently, these services are not taxed at the federal level.
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In contrast, provincial authorities—including the Punjab Revenue Authority, Sindh Revenue Board, and KP Revenue Authority—already levy a 5 percent sales tax on ride-hailing services within their respective jurisdictions.
Sources added that FBR had proposed a similar tax during the current fiscal year’s budget cycle, but it was dropped from the final finance bill at the last minute.
Pakistan hosts several ride-hailing platforms, including InDrive, Careem, Bykea, Jugnoo, and Yango. Among them, InDrive leads the market with a 60 percent share.
