An SRO 326 (I)/2020 has been issued by the FBR for the amendment of the Islamabad Capital Territory (Tax services) Ordinance 2001. As per this amendment, sales tax on the services has been reduced from five percent to zero percent.
FBR stated that the rate of tax shall be zero percent on the services being provided by the property developers and promoters, allied services being included, related to low-cost housing schemes sponsored or approved under the Naya Pakistan housing scheme and Development authority or under the Ehsaas program by the Government.
As per this amendment, a condition shall be met that no input tax adjustment or refund shall be admissible in order to avail the rate of zero percent for such services.