Karachi, January 17, 2024 – The Sindh government has released the sales tax rates on telecom services for the tax year 2024, applicable across the province.
The Sindh Revenue Board (SRB), the provincial revenue collection agency, has issued the updated Sales Tax on Services Act, 2011 for the upcoming tax year.
According to the new tax regulations, a uniform sales tax rate of 19.50% will be applicable to various telecom services during the tax year 2024. The comprehensive list includes a range of services, each subject to the specified tax rate:
• Telecommunication services
• Telephone services
• Fixed line voice telephone service
• Wireless telephone
• Cellular telephone
• Wireless Local Loop telephone
• Video telephone
• Payphone cards
• Prepaid calling cards
• Voice mail service
• Messaging service
• Short Message Service (SMS)
• Multimedia message service (MMS)
• Shifting of telephone connection
• Installation of telephone extension
• Provision of telephone extension
• Changing of telephone connection
• Conversion of NWD connection to non-NWD or vice versa
• Cost of telephone set
• Restoration of telephone connection
• Others
• Bandwidth services
• Copper line based
• Fibre-optic based
• Co-axial cable based
• Microwave based
• Satellite based
• Others
• Telegraph
• Telex
• Telefax
• Store and forward fax services
• Others
• Internet services
• Internet services including email services
• Dial-up internet services
• Broadband services for DSL connection
• Copper line based
• Fibre-optic based
• Co-axial cable based
• Wireless based
• Satellite based
• Others
• Internet/email/Data/SMS/MMS services on WLL networks
• Internet/email/Data/SMS/MMS services on cellular mobile networks
• Others
• Data Communication Network services (DCNS)
• Copper Line based
• Co-axial cable based
• Fibre-optic based
• Wireless/Radio based
• Satellite based
• Others
• Value-added data services
• Virtual private Network services (VPN)
• Digital Signature service
• Others
• Others specified telecommunication services
• Audio text services
• Teletext services
• Trunk radio services
• Paging services including voice paging services and radio paging services
• Others
• Tracking and alarm services
• Vehicle tracking and other tracking services
• Burglar and security alarm services
• Others
• Telecommunication services not elsewhere specified
The Sindh government’s decision to implement a uniform tax rate aims to simplify the taxation structure and ensure consistency across various telecom services. Analysts anticipate that this move may contribute to enhanced transparency and efficiency in tax compliance within the telecom sector.
It’s worth noting that these tax measures will play a crucial role in the revenue generation efforts of the Sindh province, as well as in regulating the telecom industry within its jurisdiction. The telecom companies and consumers alike will need to adapt to the new tax rates, with the Sindh Revenue Board closely monitoring the implementation and impact of these tax regulations throughout the tax year 2024.
