The federal government may impose sales tax on ride-hailing services operating in Islamabad in the next fiscal year’s budget.

Sources told that the Federal Board of Revenue (FBR) is considering the introduction of a 4 percent tax on CAB aggregators operating in Islamabad Capital Territory in the FY26 budget.

Currently, there is no tax on the CAB aggregators operating in the federal capital. On the other hand, the Provincial Revenue Authorities, including Punjab, Sindh Revenue Board, and KP Revenue Authority, have already been charging 5 percent sales tax on services provided by ride-hailing services.

Sources said that FBR during the current year budget had also proposed the imposition of sales tax on services provided by ride-hailing services; however, later on, it was excluded from the finance bill at the eleventh hour.

In Pakistan, a number of ride-hailing services operate in different cities, including InDrive, Careem, Bykea, Jugnoo, and Yango.

InDrive, a cab aggregator, dominates the domestic ride-hailing market with a 60 percent share.