ISLAMABAD: Customers dining at restaurants across Pakistan will now pay revised tax rates following a new government directive that took effect on July 1, 2026. The change updates the tax charged on different payment methods and introduces separate rates for digital and non-digital transactions.
Under the new policy, the tax on payments made through debit cards, credit cards, mobile wallets, and QR codes has increased from 5% to 8%. Restaurants have started informing customers about the revised rate through notices displayed at their outlets.
The revised rates create a dual tax system for restaurants. Digital payments, including cards, mobile wallets, and QR codes, will attract an 8% tax, while all other payment methods will be subject to a 16% tax.
Several restaurants have already notified customers that the revised tax rates are being implemented in line with government instructions. According to these notices, the new rates became effective on July 1, 2026, and apply to all eligible transactions from that date.
The revision comes as the government plans to raise the rates of several other existing taxes to meet its revenue targets. The updated restaurant tax rates are among the latest fiscal measures introduced under this broader plan.
Customers visiting restaurants should now expect the applicable tax on their bill to vary based on the payment method they choose.
