Tax relief aims to reduce commuter costs and support growth of digital two-wheeler transport platforms
The Sindh Revenue Board (SRB) has reduced sales tax on motorcycle ride-hailing services from 5% to 2% in a move aimed at providing relief to commuters and riders amid rising inflationary pressures.
According to an official notification issued by the SRB, the reduced tax rate will apply to services provided by owners or drivers of two-wheeler vehicles operating through cab aggregator platforms for passenger transport services classified under CPC Code 64115.
The concession has been granted under Section 8(2) of the Sindh Sales Tax on Services Act, 2011, following approval from the provincial government.
Under the revised framework, the 2% sales tax will apply only to the net passenger fare and will exclude commissions charged by ride-hailing aggregator companies.
However, the reduced rate will not apply to delivery operations, cargo movement or transportation of goods conducted through motorcycles.
The SRB clarified that cab aggregators will continue to remain responsible for compliance obligations and liabilities under the Sindh Sales Tax Special Procedure Rules, 2019 governing ride-hailing services.
The notification took effect from May 25, 2026.
Earlier this month, the tax reduction was approved during a Sindh cabinet meeting chaired by Chief Minister Syed Murad Ali Shah.
The chief minister said the provincial government remained committed to accelerating economic activity while providing direct financial relief to citizens facing inflationary and economic pressures.
Industry observers said the lower tax rate could help reduce ride costs for passengers and encourage wider adoption of motorcycle-based ride-hailing services in urban centres, particularly Karachi, where two-wheeler transport platforms have expanded rapidly in recent years.
Analysts also said the measure could support digital transport platforms and improve documentation of the informal transport sector through regulated aggregator systems.
