The government of the Federal Territory of Islamabad has proposed a plan to encourage digital payments by lowering the tax rate on credit card payments for restaurant services. Currently, the tax rate stands at 15 percent, but the proposal suggests reducing it to 5 percent.
This lower tax rate will apply to various food service establishments like restaurants, cafes, coffee houses, and food parlors. Customers who make payments using debit or credit cards, mobile wallets, or QR scanning will benefit from the reduced rate of 5 percent.
However, it is important to note that this provision does not allow for any adjustment or refund of taxes paid. The tax rate for cash payments will remain unchanged at 15 percent.