The federal government is considering imposing a 4% sales tax on ride-hailing services operating in Islamabad as part of the upcoming fiscal year's budget.

According to sources, the Federal Board of Revenue (FBR) is evaluating this proposal for cab aggregators in the Islamabad Capital Territory, bringing taxation policies in line with provincial authorities such as Punjab, Sindh, and Khyber Pakhtunkhwa, which already charge a 5% sales tax on these services.

The idea was initially floated in the previous budget but was later removed from the finance bill at the last moment. However, discussions have resurfaced regarding its implementation, potentially affecting major ride-hailing platforms operating in Pakistan, including InDrive, Careem, Bykea, Jugnoo, and Yango.

With InDrive leading the domestic market, holding a 60% share, stakeholders are closely monitoring this development, which could impact pricing structures and overall service accessibility. The final decision will be confirmed as the FY26 budget unfolds.