The Sindh government has announced a significant increase in the sales tax for various sectors, effective from July 1, to bolster revenue for the fiscal year 2024-25. The sales tax rate has been raised from 13% to 15%, impacting restaurants, cafes, bakeries, marriage halls, hotels, guest houses, farmhouses, cleaners, and other businesses.
However, there’s a silver lining for those who hold debit or credit cards. The government has introduced a special benefit for electronic payments. Customers making payments through debit or credit cards will enjoy a reduced sales tax rate of just 8%, effectively giving them a 7% discount on their bills.
Key Points:
- Sales Tax Increase: The Sindh Sales Tax has been increased by 2%, now standing at 15% up from the previous 13%.
- Affected Businesses: Restaurants, cafes, bakeries, marriage halls, hotels, guest houses, farmhouses, and cleaners will collect the new tax rate.
- Benefit for Card Holders: Payments made via debit or credit cards will incur only an 8% sales tax, providing a substantial benefit.
- Implementation: The new tax rate and the benefit for electronic payments have been effective since July 1. The Sindh Revenue Board has made it clear that excuses such as the absence of POS machines or technical errors will not be accepted.
Last month, Chief Minister Murad Ali Shah presented a provincial budget of Rs2.244 trillion with a development outlay of Rs410 billion. Addressing the Sindh Assembly, Mr. Shah, who also serves as the provincial finance minister, expressed pride in presenting the fifth budget of the current government. He emphasized that the budget was the best possible under the circumstances, considering the impacts of the global recession, heavy rains, and floods in the country.
This new initiative aims to encourage digital transactions while increasing the province’s revenue. Cardholders stand to gain significantly from this policy, making it a win-win for both the government and the consumers.
For further details on how this change might affect you, or to understand the full scope of the new tax regulations, stay tuned to official updates from the Sindh Revenue Board.
