Big changes may be coming for ride-hailing users and companies in Islamabad! The federal government is reportedly planning to introduce a 4% sales tax on ride-hailing services in the FY2025–26 federal budget, a move that could reshape the cost of digital transportation in the capital. 💸
📊 What’s Happening?
According to sources at ProPakistani, the Federal Board of Revenue (FBR) is seriously considering imposing a 4% sales tax on cab aggregators operating within the Islamabad Capital Territory.
This marks a significant policy shift, as ride-hailing services currently operate tax-free in the capital, unlike in provinces such as:
- Punjab
- Sindh
- Khyber Pakhtunkhwa
These provinces already charge 5% sales tax on services like InDrive, Careem, Bykea, Jugnoo, and Yango.
🕐 Not the First Time
Interestingly, FBR had floated a similar proposal during the previous budget cycle. However, it was dropped from the final Finance Bill at the last moment. This time, the tax could finally make its way into the upcoming fiscal legislation.
🚗 Who Will Be Affected?
If passed, the 4% sales tax would directly impact:
- Ride-hailing companies (operating costs may rise)
- Drivers (may see reduced earnings)
- Consumers (possible fare increases)
With InDrive holding a dominant 60% market share in Pakistan, this tax could have wide-reaching consequences for the entire digital ride economy.
🔎 What to Watch
- Final budget announcement for FY2025–26
- Possible price hikes on services in Islamabad
- Reaction from cab aggregators and consumer rights groups
📢 Final Thoughts
As digital transport becomes a staple in urban life, taxation and regulation are inevitable. However, striking the right balance is crucial to avoid burdening both drivers and commuters. If you rely on ride-hailing in Islamabad, stay tuned—your daily commute may soon get a little more expensive.
