The Balochistan Revenue Authority (BRA) has introduced an 8% sales tax on rent-a-car and automobile rental services across Balochistan, making registration with the authority mandatory for all businesses operating in the sector.
According to BRA officials, the new tax has been implemented through amendments to the Balochistan Sales Tax on Services Act, 2015 under the Finance Act, 2025. Under the revised framework, car rental and vehicle hire services will now fall under the 8% sales tax category.
Officials stated that all rent-a-car and automobile rental operators must register with the BRA and submit their tax returns within the timelines prescribed under the law. The move is aimed at improving tax compliance and bringing more businesses into the provincial tax system.
The authority warned that companies failing to register, pay due taxes, or file returns on time may face strict legal action, including fines and penalties as outlined in the relevant legislation.
To ensure implementation, BRA has intensified field operations across different districts of Balochistan. Special teams have been deployed to visit commercial areas and identify unregistered rent-a-car operators to bring them into the tax net.
The authority also noted that the BRA contributes more than 80% of the province’s revenues, which play a key role in funding development and public sector projects across Balochistan.
