Karachi, July 17, 2025 – The Sindh government has made it mandatory for individuals and entities providing or rendering renting of immovable property services to issue tax invoices.
This new requirement was formalized through Notification No. 3-4/41/2025 issued by the Sindh Revenue Board (SRB) on July 16, 2025.
According to the notification, all providers of property rental services in Sindh must now issue tax invoices in accordance with sub-rule (1) of Rule 29 of the Sindh Sales Tax on Services Rules, 2011. These service providers are obligated to charge and collect sales tax at the fixed rate of 3%. This move is part of the provincial government’s ongoing effort to enhance transparency, promote tax compliance, and bring unregulated services under the formal tax net.
In addition to rental services, the Sindh government has also implemented critical changes to taxation in the construction sector. The standard tax rate for construction services remains 15%. However, service providers now have the option to pay a reduced rate of 8%, provided they declare their election electronically via Form “C” on the SRB web portal within 21 days from the beginning of the financial year.
New entrants to the construction services business in Sindh must exercise this option at least 14 days before starting their economic activities. Once selected, the chosen rate will remain valid for the current financial year and subsequent years unless revoked electronically through proper procedure.
A similar provision has been introduced for ready-mix concrete services, which are now also taxed at the standard rate of 15%. However, businesses involved in ready-mix concrete supply may choose a reduced rate of 8% by submitting Form “R” on the SRB portal within 21 days of the new financial year or 14 days prior to launching new operations.
These reforms reflect the Sindh government’s broader policy of enhancing fiscal administration while allowing flexibility to service providers through optional lower tax regimes. The SRB stated that these measures aim to bring consistency and clarity in tax obligations for vital sectors across Sindh, especially those previously operating under varying interpretations of the tax laws.