SOHAIL SARFRAZ

ISLAMABAD: The Federal Board of Revenue (FBR) will impose sales tax on 12 services including corporate law consultants, public relation services and auction services within the jurisdiction of Islamabad Capital Territory from next fiscal year.

Sources told Business Recorder here on Monday that under Finance Bill 2018, the scope of services under Islamabad Capital Territory (Tax on Services) Ordinance, 2001 has been increased owing to the fact that services which are chargeable to sales tax in provinces are not chargeable to sales tax under Islamabad Capital Territory (Tax on Services) Ordinance, 2001.

It is expected that lower rate of sales tax would be charged on these services at Islamabad Capital Territory for 2018-19. Last year, 5 percent sales tax was charged on certain services under Islamabad Capital Territory (Tax on Services) Ordinance, 2001.

According to sources, sales tax has been proposed on 12 services within Islamabad Capital Territory for 2018-19 including visa processing services, airport service, floral, other decoration, furnishing of space, ancillary or allied services whether or not involving rental of equipment and accessories, photography/ filmmaking services, services provided by accountants (including practicing chartered or cost accountants), auditors, actuaries, corporate tax consultants, liquidators, auctioneers and corporate law consultants, public relation services, auction services, services provided by stock brokers and commodity brokers, services rendered by producers for anything related to TV, film, radio production, advertisement on close circuit TV, advertisement in newspapers and periodicals, advertisement on cable TV network, advertisement on poles, advertisement on billboards, other advertisements including those on web or internet, services provided for purchase of sale or hire of immovable property and services provided by legal practitioners and consultants.

Sources added that certain services are chargeable to sales tax under Sindh Sales Tax on Services Act, 2011 and Punjab Sales Tax Services Act, 2012 and are not chargeable to sales tax under Islamabad Capital Territory (Tax on Services) Ordinance, 2001. In order to synchronize all such services, which are proposed to be included in the Schedule to Islamabad Capital Territory (Tax on Services) Ordinance, 2001.

In last budget (2017-18), sales tax was imposed on certain services under Islamabad Capital Territory (Tax on Services) Ordinance, 2001.