The Federal Board of Revenue (FBR) has issued a clarification on the news item appearing in Daily Business Recorder on 22nd January 2021 regarding the imposition of 16 % Sales Tax on IT Services and IT Enabled Services. FBR has stated that IT and IT Enabled Services were subject to Sales Tax at 16 % since July 2015 under Islamabad Capital Territory (Tax on Services) Ordinance, 2001. Later, FBR reduced the rate of Sales Tax on these services to 5 % vide SRO 781 (I)/2018 dated 21st June 2018.