Sindh Revenue Board Clarifies Reports of Increasing Tax on Card Payments At Restaurants

The government of Sindh has not reinstated a 15 percent service tax on debit and credit card payments at restaurants and cafes. Sindh Revenue Board has dispelled rumors of imposing a 15 percent sales tax on services paid via debit and credit cards at hotels and restaurants. An SRB spokesperson said that the actual sales tax rate for such transactions remains at 8 percent. Under the Sindh Finance Act, a 15 percent service tax is imposed on food bills paid in cash. However, if the bill is settled using a debit or credit card, the tax rate is reduced to 8 percent. Earlier, the tax was lowered to tempt consumers into spending more and support the hospitality industry. The discount was more focused on encouraging people to shift to digital transactions instead of fiat cash to improve the currency documentation in circulation.