In short
- Travel agency services are taxed by province: Punjab 8%, Sindh 5%, Islamabad 5%, all without input tax adjustment; Khyber Pakhtunkhwa 8% for non-corporate agents; Balochistan a fixed Rs 100 per air ticket.
- Hajj and Umrah are treated differently in each: tax-free in Punjab, exempt for tour operators in Sindh and Balochistan, fixed amounts per pilgrim in Khyber Pakhtunkhwa, and outside the Islamabad entry.
- No province has a registration threshold in force: an agency providing taxable services from an office in the province registers there.
- Provincial tax is paid by the 15th and the return filed by the 18th of the following month.
- FBR’s digital invoicing applies to persons registered for federal sales tax; travel agencies registered only with a province fall under their provincial authority instead.
This guide explains the rules in plain words. It is not tax advice: for your own situation, read the official documents linked below or ask a tax adviser.
Who taxes a travel agency
Sales tax on services in Pakistan belongs to the provinces. A travel agency providing services from an office in Punjab deals with the Punjab Revenue Authority, in Sindh with the Sindh Revenue Board, in Khyber Pakhtunkhwa with the Khyber Pakhtunkhwa Revenue Authority, and in Balochistan with the Balochistan Revenue Authority. Services in the Islamabad Capital Territory are taxed under a federal law administered by the Federal Board of Revenue (FBR).
Rates for travel agents, province by province
| Where your office is | Travel agents | Hajj and Umrah |
|---|---|---|
| Punjab | 8%, without input tax adjustment (raised from 5% by the Punjab Finance Act 2026) | Tax-free, including Ziyarat |
| Sindh | 5%, without input tax adjustment, under "travel arrangement, tour operator and related services" | Exempt for tour operators’ services |
| Khyber Pakhtunkhwa | 8% for non-corporate agents, without input tax adjustment; corporate agents at the standard 15% | A fixed Rs 10,000 per Hajj pilgrim and Rs 5,000 per Umrah pilgrim aged 13 to 60 |
| Balochistan | Rs 100 per domestic or international air ticket; tour operators 5% | Hajj and Umrah tour packages exempt |
| Islamabad Capital Territory | 5%, without input tax adjustment or refund | Not covered by the travel agents’ entry |
The value tax is charged on. Each law taxes the value of the service, meaning what the agency receives for it. None of the texts we read says, for ticket sales, whether that is the full ticket price or only the agency’s commission or service charge. Before you settle how you charge it, confirm with your provincial authority or a tax adviser.
Card and digital payments in Punjab. A Punjab notification of 2 July 2026 has banks and digital payment operators deduct 8% of the gross card or digital payment made to travel agents.
Registering
None of the five laws has a turnover threshold in force: an agency that provides taxable services from an office in the province registers there, and not being registered does not remove the tax due. Registration is online:
- Punjab: PRA e-portal
- Sindh: e-SRB
- Khyber Pakhtunkhwa: KPRA
- Balochistan: BRA e-enrolment
- Islamabad: FBR
Paying, filing and invoices
In all four provinces, tax for a month is paid by the 15th of the next month and the return is filed by the 18th.
Invoice details differ by province. Sindh’s rules, for example, ask for the service code and the buyer’s NTN, SNTN or CNIC on the invoice, and Sindh’s 2026 Finance Act also places duties on the software that produces invoices.
E-invoicing and invoice monitoring
| What applies now | For travel agents | |
|---|---|---|
| Punjab | Electronic Invoice Monitoring System (e-IMS) for registered persons with turnover of Rs 10 million or more in “all other services” | Covered by the rule’s wording above that turnover |
| Sindh | Point-of-sale integration | Restaurants only, so far |
| Khyber Pakhtunkhwa | The law allows e-invoicing to be prescribed | No notification for travel agents found |
| Balochistan | The law allows electronic integration | No notification for travel agents found |
| Islamabad | Real-time integration with FBR once FBR sets the date by general order | Travel agents are within the services listed |
FBR digital invoicing applies to persons registered for sales tax under the federal Sales Tax Act. As we read the rules, a travel agency registered only with its province is not within it; an Islamabad agency comes under FBR through the Islamabad services law instead.
Selling to customers in another province
No single official rule covers it. The provincial laws tax services provided from an office in the province, and Punjab, Khyber Pakhtunkhwa and Balochistan add rules for tax charged to their residents. If you sell across provinces regularly, ask your authority how it applies to you.
Getting it right
- Register with the authority of each province you have an office in.
- Confirm with that authority how the value of a ticket sale is worked out for your business.
- Keep Hajj and Umrah sales apart from other travel: their treatment differs by province.
- Pay by the 15th and file by the 18th, every month.
- In Punjab, check whether your turnover brings you under e-IMS.
Official sources
- Punjab Sales Tax on Services Act 2012, 17th edition 2026-27 (Punjab Revenue Authority)
- Sindh Sales Tax on Services Act 2011, consolidated August 2026 (Sindh Revenue Board)
- Sindh Sales Tax on Services Rules 2011, consolidated August 2026
- Sindh Online Integration of Business Rules 2022
- Khyber Pakhtunkhwa Sales Tax on Services Act 2022, updated by Finance Act 2026 (KPRA)
- Balochistan Sales Tax on Services Act 2015, amended by Finance Act 2026 (BRA downloads)
- Islamabad Capital Territory (Tax on Services) Ordinance 2001 (FBR)
- FBR Sales Tax General Order 01 of 2026