Islamabad Capital Territory (Tax on Services) Ordinance, 2001 
 
1 
 
(As amended up to 30th June, 2025) 
 
The 
ISLAMABAD CAPITAL TERRITORY 
(TAX ON SERVICES)  
ORDINANCE,  
2001 
 
(ORDINANCE NO. XLII OF 2001) 
 
   
Updated vide Finance Act, 2025 
                     By 
a team of Provincial Taxes Wing, 
Federal Board Revenue, 
Islamabad. 
 
 
(Any inadvertent error may kindly be reported for necessary correction to any of above 
mentioned officers at following phone number): 
 
Ph: 051-9216838 
(Amendments by the Finance Act, 2025 have been shown in RED) 
 
 
  
 
 
 
 
 
 
 
 
Islamabad Capital Territory (Tax on Services) Ordinance, 2001 
 
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Table of Contents 
 
ISLAMABAD CAPITAL TERRITORY (TAX ON SERVICES) ORDINANCE, 2001 ......... 3 
1. Short title, extent and commencement ................................ ................................ ........ 3 
2. Interpretation. ................................ ................................ ................................ .............  4 
3.  Scope of tax. ................................ ................................ ................................ ...............  4 
THE SCHEDULE (Table-1) ................................ ................................ ..............................  5 
              (Table-2) ……………………………………………………………………………………………….   14 
 
 
 
  
Islamabad Capital Territory (Tax on Services) Ordinance, 2001 
 
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The  
ISLAMABAD CAPITAL TERRITORY 
(TAX ON SERVICES)  
ORDINANCE, 
 2001 
 
1[Notification No. F. 2(1)/2001 -Punj., dated 18th August, 2001. —The following 
Ordinance promulgated by the President is hereby published for general information:-- 
ORDINANCE NO. XLII OF 2001 
 
AN 
ORDINANCE 
 
to provide for levy of sales tax on services rendered or provided in the Islamabad Capital 
Territory 
 
 
WHEREAS it is expedient to provide for levy of sales tax on the services  rendered or 
provided in the Islamabad Capital Territory and for matters ancillary thereto  or connected 
therewith; 
 
AND WHEREAS the President is satisfied that circumstances exist which render  it 
necessary to take immediate action; 
 
NOW, THEREFORE, in pursuance of proclamation of Emergency of the  fourteenth 
day of October, 1999, and the Provisional Constitution Order No. 1 of 1999, read with the 
Provisional Constitution (Amendment) Order No. 9 of 1999, and in exercise  of all powers 
enabling him in that behalf, the President of the Islamic Republic of Pakistan is pleased to make 
and promulgate the following Ordinance;- 
 
 
1. Short title, extent and commencement .--(1) This Ordinance may be called the 
Islamabad Capital Territory (Tax on Services) Ordinance, 2001. 
(2)  It extends to whole of Islamabad Capital Territory. 
 
                                                             
1Issued by the Ministry of Law and Justice, under the signature of Mr. Justice Faqir Muhammad Khokhar, Secretary, vide Ex. Ord . Gaz.of 
Pak., 2001, Pt. I, P.923. 
Islamabad Capital Territory (Tax on Services) Ordinance, 2001 
 
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(3)  It shall come into force at once. 
 
2. Interpretation.--In this Ordinance, unless there is anything repugnant in the subject or 
context, the words and expression used but not defined shall have the same meaning as in the  
Sales Tax Act, 1990. 
3.  Scope of tax.— 2[(1) Subject to the provisions of this Ordinance, there shall be charged, 
levied and paid a tax known as sales tax at rates specified in column (4) of Table -1 of the 
Schedule to this Ordinance of the value of the taxable services rendered or provided in the 
Islamabad Capital Territory: 
Provided that the services specified in Table-2 of the Schedule shall be charged to tax 
at such rates and subject to such conditions and limitations as specified therein:] 
 
6[Provided further that from such date and in such mode and manner, as may be 
prescribed through a general order by the Board, any service provider as mentioned in Table 1 
and Table 2 of the Schedule shall integrate his businesses with the Board ’s computerized 
system for real-time reporting of provision of services.] 
 3[(1A) Notwithstanding the provision of sub-section (1), the export of services shall be 
charged at the rate of zero per cent.] 
(2)  The tax shall be charged and levied on the services specified in4[column (2) of] 
5[Table-1 or Table-2 of the Schedule to this Ordinance, as the case may be,] in the same manner 
and at the same time, as if it were a sales tax leviable under sections 3, 3A or 3AA, as the case 
may be, of the Sales Tax Act,1990. 
 [(2A) The following provisions of the Sales Tax Act, 1990, shall apply, mutatis 
mutandis, to the services rendered or provided under this Ordinance, namely: − 
(a) clause (b) of sub-section (2) and sub-sections (6) and (7) of section 3; 
7[b) serial number 2,  and serial number 8A  in column (1), and the entries 
relating thereto of the Fifth Schedule read with section 4; 
c) sub-sections (2), (3), (6) and (7) of section 13; and  
                                                             
2Sub-section (1) substituted by Finance (Supplementary) Act, 2022.  
3New sub-section (1A) inserted by the Finance Act, 2021.  
4The words brackets and figure “column (2) of” inserted by the Finance Act, 2015  
5Expression substituted by Finance (Supplementary) Act, 2022.  
6In section 3, – in sub-section (1), in the first proviso, for the semicolon, a colon shall be substituted and thereafter the following new 
proviso inserted by the Finance Act, 2025 .  
7 expression added through Finance Act, 2023.  
Islamabad Capital Territory (Tax on Services) Ordinance, 2001 
 
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9[(d) serial number 48, 147 and 163 in column (1), and entries relating thereto 
of Table 1 of Sixth Schedule read with section 13.”. 
 
8[(2B) The tax levied under sub -section (1) shall not be applicable to regulatory and 
licensing services rendered or provided by an organization established by or under a Federal 
statute]. 
 
(3)  All the provisions of the Sales Tax Act, 1990, and rules made and notifications, orders 
and instructions issued there under shall, mutatis mutandis, apply to the collection and payment 
of tax under this Ordinance in so far as they relate to – 
(a)  manner, time and mode of payment; 
(b)  registration and de-registration; 
(c)  keeping of records and audit; 
(d)  enforcement and adjudication; 
(e)  penalties and prosecution; and 
(f)  all other allied and ancillary matters. 
10[(4)  Notwithstanding the provisions of this section, the Board may, whenever deem 
necessary, subject to such conditions, restrictions and limitations, specify a Negative List of 
services exempt from tax under this Ordinance in Table -3 to the Schedule, by notification in 
the official Gazette. 
 
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______________________________ 
8 Sub-section (2B) inserted by Finance Act, 2016 . 
9 In Sub-section (2A), in clause (d), after the expression “48”, the expression “147 and 163” inserted by the    Finance Act, 2025.  
10 Sub-Section (4) inserted by the Finance,  Act, 2025. 
 
 
 
 
 
 
 
Islamabad Capital Territory (Tax on Services) Ordinance, 2001 
 
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11[Table-1] 
 [See section 3(2)] 
 
S. No. Description 
PCT Heading,  
if applicable 
Rate of Tax 
(1) (2) (3) (4) 
14[1. (i) Services provided or rendered by hotels, 
motels, guest houses, farmhouses, 
marriage halls, lawns, clubs and caterers. 
 
(ii) Services provided or rendered by 
restaurants including cafes, food 
(including ice -cream) parlors, coffee 
house, coffee shops, deras, food huts, 
eateries, resorts and similar cooked, 
prepared or ready -to-eat food service 
outlets etc.  
 
98.01 
 
(i) 13[Fifteen 
percent 
 
 
(ii) (a) Five percent 
where payment 
against services 
is received 
through debit or 
credit cards, 
mobile wallets 
or QR scanning 
subject to the 
condition that 
no input tax 
adjustment or 
refund shall be 
admissible; and  
(b) Fifteen 
percent where 
payment 
received in 
cash.”. 
2. Advertisement on television and radio, 
excluding advertisements– 
(a) spon sored by an a gency of the Federal or 
Provincial Government for health education; 
9802.1000 and 
9802.2000 
13[Fifteen percent 
                                                             
11 Existing Schedule re-named as Table-1 through the Finance (Supplementary) Act, 2022 .  
12 Serial number substituted through Finance Act, 2022.  
13 Substituted for the words “sixteen percent” and “seventeen percent” through Finance Act, 2022.  
14 Serial number 1 and entries relating thereto in columns (2), (3) and (4) are Substituted through Finance Act,  2023. 
Islamabad Capital Territory (Tax on Services) Ordinance, 2001 
 
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(b) sponsored by the Population Welfare 
Division relating to educational promotion 
campaign; 
(c) fi nanced out of fu nds provided by a 
Government under grant-in-aid agreement; and 
(d) conveying public service messages, if telecast 
on television by the World Wide Fund for Nature 
(WWF) or United N ations Chi ldren’s 
Fund(UNICEF). 
3. Services pr ovided by persons authori zed to 
transact business on behalf of others– 
(a)   stevedore; 
(b)  customs agents; and 
(c)   ship chandlers. 
9805.2000 
9805.4000 and  
9805.8000 
 
13[Fifteen percent 
4. Courier services and c argo services by road 
provided by courier companies; 
9808.0000 
9804.9000 
13[Fifteen percent 
5. Construction services, excluding: 
(i) construction projects (industrial and 
commercial) of the value (excluding actual and 
documented cost of land) not exceeding Rs. 50 
million per annum. 
(ii)  the cases where sales tax is otherwise paid 
as property developers or promoters.  
(iii) Government civil works including 
Cantonment Boards. 
(iv) construction of industrial zones, consular 
buildings and other organizations exempt from 
income tax. 
(v) construction work u nder international 
tenders against foreign grants-in-aid. 
(vi) Residential construction projects where the 
covered area does not exceed 10,000 square feet 
for houses and 20,000 square feet for apartments. 
9824.0000 
and 
9814.2000 
13[Fifteen percent 
Islamabad Capital Territory (Tax on Services) Ordinance, 2001 
 
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6. Services pr ovided by property developers and 
promoters (including allied services) excluding 
the actual purchase value or documented cost of 
land. 
9807.0000 
and 
respective sub- 
headings of 
heading 98.14 
Rs.100 per square 
yard for land 
development, and 
Rs.50 per square 
feet for building 
construction 
7. Services pr ovided by per sons engaged in 
contractual execution of work, excluding: 
(i)  annual total value of the contractual works 
or supplies does not exceed Rs.50 million; 
(ii) the contract involving printing or supplies 
of books. 
 
9809.0000 
13[Fifteen percent 
8. Services provided for personal care by beauty 
parlours, clinics and slimming clinics, body 
massage centres, pedicure centres; including 
cosmetic and plastic surgery by such 
parlours/clinics, but excluding:  
(i) annual turnover does not exceed Rs.3.6 
million; or  
(ii) the facility of air -conditioning is not 
installed or available in the premises. 
 
9810.0000 
9821.4000 and 
9821.5000 
13[Fifteen percent 
9. Management consultancy services. 9815.4000, 
9819.9300 
13[Fifteen percent 
10. Services provided by freight forwarding agents, 
and packers and movers. 
9805.3000, 
9819.1400 
13[Fifteen percent 
15[11. 
 
 
IT services and IT-enabled services. 
Explanation: -  For the purpose of this entry – 
(a) “IT services ” include but not limited to 
software development, software 
maintenance, system integration, web 
design, web development, web hosting and 
network design; and 
Respective 
headings 
Fifteen percent 
Islamabad Capital Territory (Tax on Services) Ordinance, 2001 
 
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(a) “IT enabled services ” include but not 
limited to inbound or outbound call centres, 
medical transcri ption, remote monitoring, 
graphics design, accounting services, human 
resources (HR) services, telemedicine 
centres, data entry operations, cloud 
computing services, data storage services, 
locally produced television programs and 
insurance claims processing. 6 
12. Services pr ovided by technical, scie ntific and 
engineering consultants. 
9815.5000 
 
13[Fifteen percent 
13. Services provided by other consultants including 
but not limited to human resource and personnel 
development services; market research services 
and credit rating services. 
9815.9000 
9818.3000 
9818.2000 
13[Fifteen percent 
14. Services pr ovided by tour operators and travel 
agents including a ll their a llied services or 
facilities (other than Hajj and Umrah). 
9805.5100 
9805.5000 
9803.9000 
13[Fifteen percent 
15. Manpower recruitment agents including labour 
and manpower supplies. 
9805.6000 
13[Fifteen percent 
16. Services provided by security agencies. 9818.1000 
13[Fifteen percent 
17. Services provided by advertising agents. 9805.7000 
13[Fifteen percent 
18. Share transfer or d epository agents including 
services provided through manual or electronic 
book-entry system used to record and maintain 
securities and to register the t ransfer of shares, 
securities and derivatives. 
9805.9000 
13[Fifteen percent 
19. Business support services. 9805.9200 
13[Fifteen percent 
20. Services provided by fashion designers, whether 
relating to textile, leather, jewellery or other 
9819.6000 
13[Fifteen percent 
                                                             
15Serial number 11 and entries relating thereto in columns (2), (3) and (4) are Substituted through Finance Act, 2023.   
 
 
  
Islamabad Capital Territory (Tax on Services) Ordinance, 2001 
 
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product regimes, including al lied s ervices, 
marketing, packing, delivery and display, etc. 
21. Services pr ovided by arch itects, town p lanners 
and interior decorators. 
9814.1000 
9814.9000 
13[Fifteen percent 
22. Services provided in respect of rent a car. 9819.3000 
13[Fifteen percent 
23. Services provided by specialized workshops or 
undertakings (au to-workshops; w orkshops f or 
industrial machinery, c onstruction a nd ea rth- 
moving machinery or other special purpose 
machinery e tc; w orkshops for e lectric or 
electronic eq uipments or appliances e tc. 
Including c omputer hard ware; car washing or 
similar service stations and other workshops). 
98.20 
13[Fifteen percent 
24. Services provided for purposes i ncluding 
fumigation services, maintenance a nd rep air 
(including building and equipment maintenance 
and r epair inc luding aft er sale s ervices) or 
cleaning services, janitorial services, dredging or 
de-silting services and other similar services etc. 
98.22 
13[Fifteen percent 
25. Services provided by underwriter, indenters, 
commission agents including brokers (other than 
stock) and auctioneers. 
9819.1100, 
9819.1200, 
9819.1300 
and 
9819.9100 
13[Fifteen percent 
26. Services provided by l aboratories other than 
services rel ating to pathological or diagnostic 
tests for patients. 
98.17 
13[Fifteen percent 
27. Services provided by health clubs, gyms, 
physical fitness centres,  indoor sports and games 
centres and body or sauna massage centres. 
9821.1000 
and 
9821.2000 
9821.4000 
13[Fifteen percent 
28. Services provided by laundries and dry cleaners. 9811.0000 
13[Fifteen percent 
29. Services provided by cable TV operators. 9819.9000 
 
13[Fifteen percent 
Islamabad Capital Territory (Tax on Services) Ordinance, 2001 
 
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30. Technical analysis and testing services. 9819.9400 
13[Fifteen percent 
31. Services provided by TV or ra dio program 
producers or production houses. 
-- 
13[Fifteen percent 
32. Transportation through pi peline a nd conduit 
services. 
-- 
13[Fifteen percent 
33. Fund a nd ass et (including investment) 
management services. 
-- 
13[Fifteen percent 
34. Services pr ovided by inland port operators 
(including ai rports a nd d ry ports) a nd al lied 
services provided at ports and services provided 
by terminal operators i ncluding services in 
respect of public bonded warehouses, excluding 
the amounts r eceived by way of fee under a ny 
law or by-law. 
-- 
13[Fifteen percent 
35. Technical inspection a nd certification services 
and quality control (st andards’ certification) 
services. 
-- 
13[Fifteen percent 
36. Erection, commissioning a nd installation 
services. 
-- 
13[Fifteen percent 
37. Event management services. -- 
13[Fifteen percent 
38. Valuation services; competency and eligibility 
testing services excluding education testing 
services provided or rendered under a bilateral 
or multilateral agreement signed by the 
Government of Pakistan], 
-- 
13[Fifteen percent 
39. Exhibition or convention services. -- 
13[Fifteen percent 
40. Services provided in respect of mining of 
minerals, oil & gas including related and allied 
activities. 
-- 
13[Fifteen percent 
41. Services pr ovided by pro perty dea lers and 
realtors. 
-- 
13[Fifteen percent 
42. Call centres. -- 
13[Fifteen percent 
14[43. Services provided by car/ automobile dealers. -- 13[Fifteen percent 
Islamabad Capital Territory (Tax on Services) Ordinance, 2001 
 
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44. Advertisement on hoarding boards, pole signs 
and signboards, and websites or internet. 
9802.9000 13[Fifteen percent 
45. Services provided by landscape designers. 9814.4000 13[Fifteen percent 
46. Sponsorship services. 9805.9100 13[Fifteen percent 
47. Services provided or rendered by legal 
practitioners and consultants. 
9815.2000 13[Fifteen percent 
48. Services provided by accountants and auditors 9815.3000 13[Fifteen percent 
49. Service provided or rendered by Stockbrokers, 
future brokers and commodity brokers, money 
exchanger, surveyors, outdoor photographers, 
event photographers, videographers, art 
painters, auctioneers (excluding value of goods) 
and registrar to an issue. 
9819.1000, 
9819.2000, 
9819.5000, 
9819.7000, 
9819.8000,  
9819.9100, 
9819.9500 and 
9819.9090 
13[Fifteen percent 
50. Services provided by race clubs:  
Entry/ admission and other services. 
- - 13[Fifteen percent 
51. Services provided or rendered by corporate law 
consultants. 
9815.9000 13[Fifteen percent 
52. Visa processing services, including advisory or 
consultancy services for migration or visa 
application filing services. 
- - 13[Fifteen percent 
53. Debt collection services and other debt recovery 
services. 
- - 13[Fifteen percent 
54. Supply chain management or distribution 
(including delivery) services. 
- - 13[Fifteen percent 
55. Services provided or rendered by persons 
engaged in inter -city transportation or carriage 
of goods by road or through pipeline or conduit. 
- -  13[Fifteen percent 
56. Ready mix concrete services. - - 13[Fifteen percent 
57. Public relations services. - - 13[Fifteen percent 
58. Training or coaching services other than 
education services. 
- - 13[Fifteen percent 
59. Cleaning services including janitorial services, 
collection of waste and processing of domestic 
waste. 
9822.2000, 
9822.3000 and 
9822.9000 
13[Fifteen percent 
16[60. Electric Power Transmission Services. - - Fifteen percent 
 
______________________________ 
16Serial number 60 added through Finance Act, 2023. 
 
 
 
 
 
Islamabad Capital Territory (Tax on Services) Ordinance, 2001 
 
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 17[T able -2]  
S.No. Description 
PCT Heading, 
if applicable 
Rate of Tax 
(1) (2) (3) (4) 
1. Construction services, excluding 
 
(i) Construction projects  (industrial and 
commercial) of the value (excluding actual 
and documented cost of land) not 
exceeding Rs.50 million per annum; 
(ii) The cases where sales tax is otherwise paid 
as property developers or promoters; 
(iii) Government civil works including 
cantonment boards; 
(iv)  Construction of industrial zones, consular 
building and other organizations exempt 
from income tax; and 
(v) Residential construction projects where the 
covered area does not exceed 10,000 
square feet for houses and 20,000 square 
feet for apartments. 
9814.2000 
and 
9824.0000 
 
Zero per cent 
subject to the 
condition that no 
input tax 
adjustment or 
refund shall be 
admissible 
 
 
 
 
 
 
 
 
 
 
2. Services provided for personal care by beauty 
parlours, clinics and slimming clinics, body 
massage centers, pedicure centers, including 
cosmetic and plastic surgery by such parlours / 
clinics, but excluding cases where - 
(i) annual turnover does not exceed Rs.3.6 
million; or  
(ii) the facility of air -conditioning is not 
installed or available in the premises. 
9810.0000, 
9821.4000 
and 
9821.5000 
Five per cent 
subject to the 
condition that no 
input tax 
adjustment or 
refund shall be 
admissible. 
3. Services provided by freight forwarding agents, and 
packers and movers. 
9805.3000 
and 
9819.1400 
Five percent or  
Rs.1000 per bill of 
lading, whichever 
is higher subject to 
                                                             
17Table-2 inserted by Finance (Supplementary) Act, 2022 . 
Islamabad Capital Territory (Tax on Services) Ordinance, 2001 
 
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the condition that 
no input tax 
adjustment or 
refund shall be 
admissible. 
4. Services provided by tour operators and travel 
agents including all their allied services or facilities 
(other than Hajj and Umrah). 
9803.9000,     
9805.5000 
and 
9805.5100 
Five per cent 
subject to the 
condition that no 
input tax 
adjustment or 
refund shall be 
admissible. 
5. Services provided by specialized workshops or 
undertakings (auto -workshops; workshops for 
industrial machinery, construction and earth - 
moving machinery or other special purpose 
machinery etc; workshops for electric or electronic 
equipment or appliances etc. Including computer 
hard ware; car washing or similar service stations 
and other workshops). 
98.20 Five per cent 
subject to the 
condition that no 
input tax 
adjustment or 
refund shall be 
admissible. 
6. Services provided by health clubs, gyms, physical 
fitness centers, indoor sports and games centers 
and body or sauna massage centers. 
9821.1000, 
9821.2000 and 
9821.4000 
Five per cent 
subject to the 
condition that no 
input tax 
adjustment or 
refund shall be 
admissible. 
7. Services provided by laundries and dry cleaners. 9811.0000 Five per cent 
subject to the 
condition that no 
input tax 
adjustment or 
refund shall be 
admissible. 
8. Services provided by property dealers and realtors. Respective 
headings 
Zero per cent 
subject to the 
Islamabad Capital Territory (Tax on Services) Ordinance, 2001 
 
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condition that no 
input tax 
adjustment or 
refund shall be 
admissible. 
9. Services provided by car / automobile dealers. Respective 
headings 
Five per cent 
subject to the 
condition that no 
input tax 
adjustment or 
refund shall be 
admissible. 
10. Services provided or rendered by marriage halls 
and lawns, by whatever name called, including 
“pandal” and “shamiana” services and caterers. 
Respective 
headings 
Five per cent 
subject to the 
condition that no 
input tax 
adjustment or 
refund shall be 
admissible. 
18[11. Services provided by software or IT -based system 
development consultants. 
9815.6000 Five percent 
subject to the 
conditions that no 
input tax 
adjustment or 
refund shall be 
admissible. 
12. Services provided by property developers and 
promoters (including allied services) relating to low 
cost housing schemes sponsored or approved by 
Naya Pakistan Housing and Development 
Authority or under Government’s Ehsaas 
programme.  
9807.0000 
and respective 
sub-headings of 
heading 98.14 
Zero per cent 
subject to the 
condition that no 
input tax 
adjustment or 
refund shall be 
admissible. 
      
18Serial number 11 substituted through Finance Act, 2022.