Proposed amendment expands scope of taxable professional services, imposing 8% sales tax on tax consultancy and preparation services
KARACHI, June 19, 2026: The Sindh government has proposed bringing tax consultants within the ambit of sales tax on services by expanding the scope of taxable professional services under the Sindh Finance Bill, 2026.
The proposal seeks to amend the definition of taxable services contained in the Second Schedule of the Sindh Sales Tax on Services Act, 2011, making tax consultancy and related services subject to provincial sales tax.
Under the proposed amendment, an 8 per cent sales tax will be imposed on:
• Legal services;
• Tax consultancy and tax preparation services; and
• Insolvency and receivership services.
The revised tax treatment will become effective from July 1, 2026, subject to approval by the Sindh Assembly.
Expansion of Taxable Professional Services
At present, legal and accounting services are already subject to an 8 percent sales tax in Sindh. However, tax consultancy and tax preparation services are not specifically included within the existing taxable categories.
The proposed amendment aims to broaden the provincial tax base by explicitly bringing tax consultants and related service providers under the sales tax regime.
According to the Finance Bill, the inclusion of tax consultancy services will ensure uniform taxation across a wider range of professional services while enhancing provincial revenue collection.
Impact on Tax Practitioners and Businesses
The proposed measure is expected to affect tax consultants, tax advisers, return preparers and firms providing specialised taxation services to businesses and individuals. Service providers falling within the amended definition will be required to comply with Sindh sales tax regulations, including registration, invoicing and tax collection obligations where applicable.
Businesses and individuals seeking professional tax advice may also experience a marginal increase in service costs as the tax becomes part of billing arrangements.
Revenue Enhancement Measures
The inclusion of tax consultancy services forms part of a broader set of revenue measures introduced through the Sindh Finance Bill, 2026. Provincial authorities are seeking to widen the tax base while maintaining lower tax rates for selected sectors to encourage economic activity.
Stakeholders from the taxation and legal professions are expected to review the implications of the proposed amendment as the Finance Bill moves through the legislative process before its anticipated implementation on July 1, 2026.
