KARACHI, June 20, 2025 – In a significant step toward modernization and standardization of tax regulations, the Sindh government has unveiled comprehensive changes to the nomenclature for sales tax on services under the Sindh Finance Bill, 2025.
These updates, intended to streamline the classification and documentation of taxable services, will come into effect from July 1, 2025.
The revised nomenclature reflects a broader effort by the Sindh Revenue Board (SRB) to align provincial tax definitions with evolving service models and international practices. This move is expected to improve tax administration and make compliance more transparent for businesses operating across diverse services sectors within Sindh.
According to the Finance Bill, a wide range of services has undergone reclassification. For instance, “Indenters” will now fall under the category of “Retail Trade Service”, while “Restaurants” are redefined as “Food Serving & Beverage Serving Services”. Similarly, “Cab Aggregators” will now be classified under “Taxi Services”.
Transport-related services have also been restructured. Previously general terms such as “services provided by persons engaged in transportation of goods by road” have now been renamed to “Road Transport Services or Freight”, and pipeline transport has been renamed “Transport Services via Pipeline”. Services like towing, valet, and parking will now be grouped under “Parking Lot & Towing Services”.
Furthermore, professional and financial sectors in Sindh will see refined classifications. “Foreign exchange dealers and money changers” will now be referred to as offering “Foreign Exchange Services”. Likewise, “Legal practitioners and consultants” are now categorized under “Legal and Accounting Services”. Insurance professionals will fall under “Insurance Brokerage and Agency Services”.
Notably, services such as supply chain management have been redefined as “Business Process Management Services”, fashion design falls under “Other Specialty Design Services”, and call centres are now “Telephone Call Centre Services & Other Information Services”.
These reforms signal the Sindh government’s focus on enhancing clarity and consistency in its taxation regime, particularly for the expanding services economy. By refining these classifications, Sindh aims to facilitate easier compliance, better documentation, and improved revenue collection from the services sector.