Sindh introduces 5% sales tax reduced rate for healthcare services

KARACHI: Sindh Revenue Board (SRB) on Thursday introduced a reduced rate sales tax at five percent for various healthcare services with compliance of certain conditions.

The provincial revenue body issued notification SRB-3-4/7/2020 to announce the reduced rate at five percent instead of 10 percent. The normal sales tax rate on services prevailed in Sindh province is 13 percent.

The SRB said that the reduced rate of five percent shall be available on the services provided or rendered by healthcare centers, gym or physical fitness centers, etc., who have submitted their option or election on Form G as prescribed under rule 42CC of the Sindh Sales Tax on Services Rules, 2011 and fulfill the limitation, conditions and restrictions prescribed in the provisos to sub-rules (4), (5) and (6) thereof.

The SRB said that the reduced rate at five percent is to those services on compliance of conditions, included:

01. The registered person electronically submits his election or option in Form G by the prescribed due date;

02. The registered person installs Point of Sale (POS) machine for electronic issuance of the invoices or receipts and gets all such machines linked up with SRB web portal to the satisfaction of SRB;

03. The registered person issues his tax invoices/bills of charges or receipts electronically and no tax invoice/bill of charges or receipts is issued otherwise except through the POS of the registered person; and

04. Input tax credit/adjustment shall not be admissible.

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