Under the ICT (tax on services) Ordinance, 2001, the government of Pakistan proposed to reduce services tax on restaurants to 5% in fiscal year 2023-24 if payment is made through debit or credit cards, mobile wallets or QRscanning in Islamabad Capital Territory.

In one of the salient features of budget 2023-24 unveiled on Friday, the document stated that “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 are proposed to be taxed at 5% if payment is made through debit or credit cards, mobile wallets or QR scanning”.