Sindh exempts sales tax on insurance services

Sindh exempts sales tax on insurance services

KARACHI: The Sindh government has exempted the insurance services from payment of sales tax up to June 30, 2019.

Sindh Revenue Board (SRB) on Wednesday issued a notification stating that with the approval of the provincial government it had exempted the insurance services (other than its related re-insurance services) from the whole of the sales tax payable.

The SRB said that the exemption is available with the condition that the amount of sales tax already charged, received or collected by the service provider shall be deposited by such service provider to the provincial exchequer.

The following services have been exempted from sales tax:
9813.1500 Life Insurance from July 01, 2018 to June 30, 2019
9813.1600 Health Insurance from July 01, 2016 to June 30, 2019.

The SRB said that the notification shall not entitle any person, whether a service provider or a service recipient, to any refund or adjustment of tax.
The notification, if not rescinded earlier, shall stand rescinded at 2359 hours of the 30th day of June 2019.

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