SALIENT FEATURES BUDGET 2023-24 

ICT (TAX ON SERVICES) ORDINANCE, 2001

The proposed budgetary measures pertaining to ICT (Tax on Services) Ordinance, 2001 for FY 2023-24 are:

 RELIEF MEASURES:

 1. Services provided by restaurants including cafes, food (including ice-cream) parlors, coffee houses, coffee shops, deras, food huts, eateries, resorts and similar cooked, prepared or ready-to-eat food service outlets etc. are proposed to be taxed @ 5% if payment is made through debit or credit cards, mobile wallets or QR scanning.

 

REVENUE MEASURES:

2. Electric power transmission services are proposed to be taxed @ 15%.

 

STREAMLINING MEASURES:

3. Granting the status of cottage industry to the freelance exporter of IT and IT enabled services. Such freelance exporters will not be required to file sales tax return.

 

4. Rate of tax on IT based system development consultants is proposed to be reduced to 15% from 16%.

 

5. Scope of IT and IT enabled services is proposed to be harmonized with scope envisaged under the Income Tax Ordinance, 2001 on the proposal of Ministry of Information Technology.

 

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