Do You Know ICTO Table 2?

ICTO Table 2 is the Table 2 of the Islamabad Capital Territory (Tax on Services) Ordinance 2001. The table specifies the zero and reduced rate services. In ICT, the reduced rate of services sales tax is 5% whereas the standard rate of services sales tax is 15%.

Against these services, tax payers can’t claim input tax in the sales tax returns.

Under the Ordinance, Federal Board of Revenue (FBR) is the authority to levy and collect sales tax on services which are rendered in ICT.

ICTO Table 2 Zero Rated Services

• Housing projects under the Naya Pakistan Housing and Development Authority or under the Govt’s Ehsaas program
• Property dealers and realtors

Construction services are also zero rated. Let see how

• Govt civil work including cantonment boards.
• Residential projects where the covered area does not exceed 10,000 sqft for houses and 20,000 sqft for apartments.
• Construction of industrial zones, consular building and other organizations which are exempt from income tax.
• Industrial and commercial projects where value does not exceed Rs. 50 million (excluding actual and documented cost of land) per annum
• The cases where sales tax is paid as property developers or promoters

ICTO Table 2 Reduced Rate Services

• Software and IT systems developers
• Marriage halls
• Car and automobile dealers
• Laundries and dry clearners
• Health clubs, gyms, fitness centers, indoor sports and game centers
• Specialized workshops
• Tour and travel operators (other than Hajj and Umrah operators)
• Freight forwarders, movers and packers
• Personal care, beauty parlours and slimming clinics

I have already published a comprehensive blog on current rates of Islamabad Sales Tax FY 2026-27. You can read it to learn more.

Download ICTO Table 2

Embedded PDF File of ICTO Table 2

For your ease, we have also embedded the Table 2 below. You can find the zero and reduced rated services.

Reference

• Islamabad Capital Territory (Tax on Services) Ordinance, 2001 (updated up to Federal Finance Act 2026).