Sindh announces tax relief measures in budget 2022-2023

Sindh announces tax relief measures in budget 2022-2023

KARACHI: The province of Sindh has announced sales tax relief measures in the budget 2022-2023 presented in the provincial assembly on Tuesday.

Sindh Chief Minister Syed Murad Ali Shah announced a number of measures to facilitate taxpayers in payment of sales tax on services.

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He said relief to public has been provided by extending existing measure to ensure that relief continues to reach common man. For this purpose;

Exemption from SST is being proposed on toll manufacturing services.

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5 per cent reduced SST rate for “Recruiting Agents” will continue for next two years i.e. up to 30th June, 2024. This relief is proposed for Pakistanis aspiring to work overseas.

Services provided by Cable TV Operators are levied at a reduced rate of 10 per cent, the existing relief is proposed to be extended for a further period of two years ending on 30th June, 2024.

Whereas, the following cable TV operators are proposed to be exempt:

a) Cable TV Operators in rural areas under PEMRA License of “R” Category to be exempt from SST till 30th June, 2023.

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The rate of SST on commission charges received by food delivery channels (i.e. Foodpanda, Cheetay Logistics, etc.) from Home Chefs is proposed to be reduced from 13 per cent to 8 per cent for a period of two (2) years ending on 30th June, 2024. This relief is proposed in order to encourage small scale businesses. In all other cases, the services provided or rendered by Commission Agents shall continue to be liable to SST at 13 per cent.

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The existing exemption on health insurance services is proposed to continue further for a period of one year till 30th June, 2023.

GIZ, a German development agency, facilitating development projects in Sindh, is proposed to be granted conditional exemption on Sales tax on services as indirect relief to the Public.