ISLAMABAD: The Federal Board of Revenue (FBR) has proposed imposition of general sales tax (GST) on 12 more services into jurisdiction of Islamabad Capital Territory (ICT) including visa processing, airport services, property dealer and advertisement in newspapers related services through Finance Bill 2018-19.
The FBR Member Inland Revenue (IR) Policy Dr Muhammad Iqbal told The News on Saturday that the FBR proposed GST on services on 10 to 12 more services for ICT as these services were already brought into tax net by the provinces under their jurisdictions.
“To bring it at par with the provinces, we have proposed to bring these services into GST net within the jurisdiction of ICT,” he said.
The services on which the FBR proposed to impose GST in the ICT included 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 hiring of immovable property and services provided by legal practitioners and consultants.
The sales tax had been imposed on certain services in the last budget 2017-18 under Islamabad Capital Territory (Tax on Services) Ordinance, 2001.
Certain services under ICT (Tax on Services) Ordinance, 2001 were chargeable to sales tax at 5 percent without any input tax adjustment. The scope of services was extended to include "services provided or rendered by marriage halls and lawns, by whatever name called, including ‘pandal’ and ‘shamiana’ services and ‘caterers’ without any input tax adjustment or refund.