BED TAX

Bed Tax is implemented under the Finance Act of 1965. As per this law, it is applied on those hotels which are situated within the territorial jurisdiction of Islamabad and consist of more than 20 lodging units (Number of bed rooms). These hotels are divided into two categories, which are:

Category I: Liquor Sale License Holder (Rate: Rs. 01 per lodging unit per day ).
Category II: Without Liquor Sale License Holder (Rate: Rs. 0.50 per lodging unit per day).

STEP – 1 :

It can be paid by two methods which are:

• Applicant visits to Excise & Taxation Department for the payment of concerned tax. OR
• Deputed official inspects the Hotel and deliver notices for related tax payment.

STEP – 2 :

Following documents are submitted by the applicant:

1. Application to ETO on office Letter pad.
2. Copy of CNIC of tax payer of concerned authorized person.
3. Details about lodging units on prescribed Performa.
4. Proof for Liquor Sales License (If applicable)
5. Registration Certificate from Tourism department.
6. Deposited Fee Challan.

STEP – 3 :

Tax amount should be deposited in State Bank of Pakistan (SBP), Islamabad / National Bank of Pakistan (NBP), E&TD branch, Islamabad in Account No: B-03056. The rate of the Bed tax is divided into two categories which are:

Category I: Rs. 01 per lodging unit per day.
Category II: Rs. 0.50 per lodging unit per day.

Penalty: At the end of financial year, the bed tax defaulters should pay the penalty in addition of fee dues, which can be equal to the Bed tax fee (100%).

NOTE: Bed tax will be paid in advance.