Sindh exempts tax on services provided for flood relief

KARACHI: Sindh government has allowed whole of sales tax on services provided or rendered for flood relief operations.

In this regard, Sindh Revenue Board (SRB) issued a notification dated September 13, 2022, stated that the government of Sindh exempted the whole of sales tax payable on such taxable services as are certified by the National Disaster Management Authority (NDMA) or Provincial Disaster Management Authority (PDMA), Sindh to be meant for flood relief operations carried out in Sindh Province.

The province allowed sales tax exemption on the following services:

01. Services provided or rendered by restaurants for free distribution as donation or charity.

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

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

04. Renting of machinery, equipment, appliances and other tangible goods acquired and used for rehabilitation and reconstruction.

05. Labor and manpower supply services provided in the course of flood relief operations.

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The SRB said that the notification, if not rescinded earlier, shall stand rescinded on and from January 01, 2023.