Business Desk 
Jul 18, 2025
The Pakistan Tax Bar Association (PTBA) has denounced the Sindh Revenue Board (SRB) for their "unfair" digital tax structure for restaurants. In a letter to SRB Chairman Dr Wasif Ali Memon, the PTBA raised concerns about the blatant inequality in the SRB's treatment of restaurants in a way that would "ultimately undermine" the province's push towards digital tax compliance documentation.
Last month, the SRB recently implemented a new tax structure for the restaurant sector for the tax year 2024-25, increasing the sales tax for restaurants from 13% to 15%.
To promote digital transactions, for payments made by card, mobile wallet and QR code, the SRB offered a reduced tax of 8%, continuing the 15% for cash transactions.
According to the PTBA, it is not equal for all. The SRB allowed 73 selected restaurants to continue charging the full tax of 15% on cash and digital payments while also allowing them to input tax adjustments. Which permits them to effectively reduce their overall tax; this is an advantage compared to other restaurants.
The PTBA believes this tax incentive has not been offered to any other restaurant, effectively creating a competitive imbalance for those restaurants not on this list that will need to raise prices, thus either losing customers or absorbing the tax on food costs.
The Tax Bar warned that such discriminatory policies weaken trust in the system and may discourage other businesses from going digital. It urged the SRB to ensure transparency, treat all restaurants fairly, and expand the digital tax benefits equally across the sector.
