Previously, Sindh Sales Tax on restaurant services was charged at a rate of 13% of the billed amount. However, effective July 01, 2024, this tax rate has increased to 15% of the billed amount. This change applies broadly to all restaurants and cafes.
Recognizing the importance of documentation and the need to facilitate service recipients, SRB has introduced an incentive for digital payments.
If a customer pays for the restaurant services provided or rendered by using debit card, credit card, mobile wallet, or by QR scanning, the tax rate will be reduced to 8% of the value. For payments made through any other channel, including cash payments, the Sindh Sales Tax on Services will be charged at 15%. However, restaurants and cafes can choose to apply for a special dispensation from SRB, allowing them to continue charging the standard rate of 15% even on digital payments and claim input tax adjustments to keep the prices rationalized. This dispensation will only apply to the branches of the restaurant / cafe, whose PoS are duly integrated with SRB’s computerized system.
For list of restaurants allowed to charge 15% on credit card etc. or not so allowed, please click below links.
Sindh Revenue Board (SRB) Head Office, 3rd Floor, Shaheen Complex, M. R. Kiyani Road, Karachi.