BRA Makes Registration, 8% Sales Tax Mandatory for Rent-a-Car and Automobile Rental Services

Quetta: The Balochistan Revenue Authority (BRA) has made registration and payment of an 8 percent sales tax mandatory for rent-a-car and automobile rental service providers across the province.
According to the authority, the decision has been taken under amendments introduced through the Finance Act 2025 to the Balochistan Sales Tax on Services Act 2015, under which the sales tax rate for rent-a-car and automobile rental services has been fixed at eight percent.
BRA officials stated that all businesses providing rent-a-car and automobile rental services are required to formally register with the authority and submit their tax returns within the stipulated time as required by law.
The authority warned that businesses failing to complete registration, pay due taxes, or submit returns on time would face strict legal action, including fines and other penalties in accordance with the law.
To ensure effective enforcement of tax regulations, the BRA has intensified field operations across the province. Special teams have been constituted and are visiting commercial centers in various districts to identify unregistered businesses and bring them into the tax net.
Officials said the authority contributes more than 80 percent of Balochistan’s provincial revenues, which are crucial for financing development projects and improving public welfare sectors, particularly health, education, and infrastructure.
The BRA has urged all rent-a-car and automobile rental service providers to complete their registration and submit tax returns on time, emphasizing that compliance with tax laws will help strengthen provincial revenues and support the development of Balochistan.