Karachi: In Sindh, the tax on payments made with debit and credit cards at restaurants and hotels has been increased again.
In the Sindh budget, the tax on card payments was reduced from 15% to 8%, but now the tax for payments made with debit and credit cards at restaurants and hotels has been raised again from 8% to 15%.
According to the Sindh Revenue Board, 58 restaurants and hotels in Karachi are still allowed to collect 15% service tax from customers. This provision is granted for input adjustment of tax payments on restaurant purchases, and it has been granted to a limited number of restaurants.
Sources indicate that since a higher proportion of restaurant sales are through cards, there was a possibility that the actual sales or income tax might be revealed.