Karachi, July 22, 2024 – The Sindh Revenue Board (SRB) has announced new sales tax rates for advertisement services for the tax year 2024-25. The rates were issued following amendments made through the provincial Finance Act, 2024.
The notification includes specific rates for various types of advertisement services. The standard sales tax rate for most advertisement services has been set at 15%. However, certain exemptions apply to encourage public welfare messages and support local media.
Below are the detailed sales tax rates and exemptions:
1. General Advertisement: 15%
o Exemptions:
Advertisements financed out of funds provided by a Government under grant-in-aid agreements.
Advertisements conveying public service messages related to the polio eradication program by UNICEF.
2. Advertisement on T.V.: 15%
3. Advertisement on Radio: 15%
4. Advertisement on Closed Circuit T.V.: 15%
5. Advertisement in Newspapers and Periodicals: 15%
o Exemption: Advertisements in newspapers and periodicals published in Sindh.
6. Advertisement on Cable T.V. Network: 15%
7. Advertisement on Poles: 15%
8. Advertisement on Billboards: 15%
9. Other Advertisements (including those on the web or internet): 15%
o Exemption: Advertisements on the websites of newspapers and periodicals published in Sindh.
The SRB’s decision to specify these rates and exemptions is seen as a balanced approach to ensure revenue generation while promoting public welfare initiatives and supporting local media outlets. The exemptions for advertisements related to polio eradication by UNICEF and those funded by the government under grant-in-aid agreements reflect the provincial government’s commitment to public health and education.
Additionally, the exemption for advertisements in newspapers and periodicals published in Sindh aims to support the local print media industry, which has been facing financial challenges in recent years. By exempting these publications from sales tax on advertisements, the SRB hopes to provide them with much-needed relief and encourage the dissemination of information within the province.
The new tax rates are effective immediately and apply to all advertisement services provided during the tax year 2024-25. Businesses and advertisers are advised to comply with these rates to avoid penalties and ensure smooth operations. The SRB has also urged stakeholders to review the amendments in the Finance Act, 2024, to fully understand the implications of the new tax regime.
This notification is part of the SRB’s broader efforts to streamline tax collection processes and enhance revenue generation for the province. The board has reiterated its commitment to transparency and efficiency in tax administration, aiming to create a conducive environment for business growth and economic development in Sindh.