KARACHI: The Sindh Revenue Board (SRB) has announced an exemption on the 13 percent sales tax applicable to advertisement services rendered in Sindh, as per the working tariff for 2020.
This exemption provides relief to various sectors utilizing advertisement services within the province.
Currently, a 13 percent sales tax is imposed on advertisement services, including those aired on television, radio, closed-circuit television, newspapers, periodicals, cable television networks, poles, billboards, and web or internet-based advertisements. However, under the new exemption, certain categories of advertisement services will no longer be subject to this tax.
Notably, advertisements published in newspapers and periodicals originating from Sindh are exempt from sales tax. This includes advertisement content displayed on the websites of such newspapers and periodicals, ensuring broader digital media coverage without additional tax burdens.
Furthermore, advertisements financed through funds provided by the government under grant-in-aid agreements also qualify for a sales tax exemption. This measure is expected to ease financial constraints for projects and initiatives funded through government support.
Another crucial exemption applies to advertisements that convey public service messages. Specifically, advertisements related to the polio eradication program by UNICEF are exempted from sales tax. This exemption encourages the dissemination of important health and awareness messages without financial restrictions.
The exemption on advertisement services is anticipated to support media organizations, businesses, and public awareness campaigns by reducing the overall cost of advertisements. By offering tax relief on select advertisement services, the Sindh government aims to promote information dissemination and ensure affordability for businesses leveraging advertising platforms.
The Sindh Revenue Board continues to review tax policies to encourage growth in the advertisement sector while ensuring compliance with taxation laws. Businesses, media agencies, and advertisers are advised to stay updated with SRB’s guidelines to benefit from applicable exemptions and streamline their advertisement-related tax obligations.
For further clarification on advertisement tax policies and exemptions, stakeholders are encouraged to consult official SRB notifications and guidelines.