Hotel Tax and Bed Tax in Pakistan 2026: What You Need to Know

 Are you running a guest house, hotel, or rental farmhouse in Pakistan? The tax laws for 2026 have been updated, and failing to collect the right amount from your guests could lead to heavy fines (up to 1 Million PKR in some provinces).


What is Bed Tax? Bed tax is an indirect tax collected from guests and deposited into provincial treasury accounts. Unlike standard GST, it is managed by the Excise, Taxation & Narcotics Control Department.

2026 Compliance Checklist:

  1. Register with Provincial Authorities: Ensure you have an NTN and are registered with PRA, SRB, KPRA, or BRA.
  2. POS Integration: Use Electronic Invoice Monitoring Systems to avoid penalties.
  3. Digital Discounts: Many provinces now offer lower tax rates (as low as 2-5%) if guests pay via digital means.

Provincial Tax Rates at a Glance:

  • Islamabad: 5% of room rent.
  • KPK: 7% of room rent (Revised in Finance Act 2025).
  • Balochistan: 15% standard rate, with significant digital payment incentives.
For a deep dive into the 50% occupancy rule in KPK and how to calculate your specific tax liability, check out our comprehensive guide: 👉 Full Guide: Hotel & Bed Tax in Pakistan

Location: Pakistan

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