Sindh exempts sales tax on services provides for floods relief by customs agents, port operators

Sindh exempts sales tax on services provides for floods relief by customs agents, port operators

KARACHI: Sindh government has exempted sales tax on services provided by customs agents and terminal operators for flood relief operations.

According to a notification issued by Sindh Revenue Board (SRB), the provincial government granted sales tax exemption on customs agents service provided or rendered in relation to the clearance of the consignments imported for flood relief operation.

Similarly, the exemption also granted to service provided or rendered by port operators and terminal operators for handling, storage and clearance of the consignments imported for flood relief operations.

In order to provide sales tax exemption, the provincial government amended the notification which was issued September 13, 2022. Therefore, the above service providers are entitled to avail the exemption from September 13, 2022.

Previously, following service providers were granted sales tax exemption:

— Services provided or rendered by restaurants for free distribution as donation or charity;

— Services provided or rendered by caterers, suppliers of food and drinks for free distribution as donation or charity;

— Advertisements for charity and donations in the Prime Minister’s Flood Relief Fund or in the Chief Minister Sindh’s Flood Relief Fund;

— Renting of machinery, equipment, appliances and other tangible goods acquired and used for rehabilitation and reconstruction;

— Labor and manpower supply services provided in the course of flood relief operations; and Services provided or rendered by persons engaged in inter-city transportation or carriage of flood relief goods by road.

The SRB said that the notification, if not rescinded earlier, shall stand rescinded on and from January 01, 2023.

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