KARACHI: The Sindh government has announced the extension of the exemption from sales tax on services up to June 30, 2023, providing continued relief for various sectors.
The decision comes as part of the government’s efforts to support businesses and organizations involved in essential services, particularly those contributing to flood relief operations.
The extension was confirmed through a circular issued by the Sindh Revenue Board (SRB) on Sunday, March 25, 2023. This move follows a previous notification issued on September 13, 2022, which granted exemption from sales tax on services up to December 31, 2022.
According to the initial notification by the SRB, the sales tax exemption applies to services provided by customs agents and terminal operators specifically for flood relief operations. Customs agents offering services for the clearance of consignments imported for flood relief, along with port operators and terminal operators involved in handling, storage, and clearance of such consignments, are eligible for this exemption.
In addition to these services directly related to flood relief, the Sindh government has extended the sales tax exemption to various other service providers. These include restaurants, caterers, suppliers of food and drinks, advertisements for charity and donations, renting of machinery and equipment for rehabilitation and reconstruction, labor and manpower supply services, and services provided by individuals engaged in inter-city transportation or the carriage of flood relief goods by road.
It’s essential to note that the sales tax exemption will stand rescinded from July 01, 2023, unless an earlier rescindment is specified. This timeline provides a window for businesses and service providers to plan and adjust their operations accordingly.
The decision to extend the sales tax exemption aligns with the Sindh government’s commitment to facilitating and supporting essential services, especially during critical situations like flood relief operations. By offering these incentives, the government aims to ensure the continued provision of vital services without additional financial burdens on businesses and organizations contributing to the relief efforts.
Businesses and service providers operating in the designated sectors are encouraged to stay informed about the timelines and conditions of the sales tax exemption to make informed decisions regarding their financial planning and operations. The Sindh government’s proactive measures underscore the importance of a supportive regulatory environment, fostering economic resilience and community welfare during challenging times.