Balochistan imposes 8% sales tax on rent-a-car and automobile rental services

QUETTA: The Balochistan Revenue Authority (BRA) has announced the imposition of an 8 percent sales tax on businesses offering rent-a-car and automobile rental services across the province.

According to BRA officials, this move follows amendments to the Balochistan Sales Tax on Services Act, 2015, which were introduced under the Finance Act, 2025. The officials stated that the new tax rate is specifically set at 8 percent for all rent-a-car and automobile rental service providers operating in Balochistan.

In addition to the new tax rate, the BRA has made it compulsory for all such businesses to register with the authority. BRA officials emphasized that businesses in this sector must complete their registration and submit their tax returns within the time frame stipulated by law. The officials further warned that failure to register, pay the required taxes, or submit returns on time will result in strict legal action. Penalties for non-compliance include fines and other measures as prescribed under the law.

The BRA has intensified its field activities throughout Balochistan to ensure effective implementation of these new regulations. The authority aims to bring all rent-a-car and automobile rental businesses into the tax net and ensure compliance with the updated legal requirements.

Officials have urged business owners in the sector to adhere to the new rules to avoid punitive action. The BRA reiterated its commitment to enforcing the law and ensuring that all taxable services are properly documented and taxed in accordance with provincial legislation.