Karachi, January 18, 2024 – The Sindh Revenue Board (SRB) has taken a significant step in providing clarity to businesses and consumers by releasing the sales tax rates for services offered by hotels, restaurants, and similar establishments for the tax year 2024.
In accordance with the updated Sindh Sales Tax on Services, 2011, the SRB has notified the rates of sales tax on various services falling under the umbrella of the hospitality industry. The released document outlines the specific rates applicable to different categories of services, aiming to streamline the taxation process and ensure transparency.
According to the SRB, the following tax rates will be applicable for the tax year 2024:
1. Services provided or rendered by hotels, motels, guest houses, restaurants, marriage halls, lawns, clubs, and caterers:
• Services provided by hotels and motels: 13%
• Services provided by restaurants: 13%
• Services provided by marriage halls and lawns: 13%
• Services provided by clubs: 13%
• Services provided by caterers, suppliers of food and drinks: 13%
• Ancillary services provided by hotels, motels, guest houses, restaurants, marriage halls, lawns, clubs, and caterers: 13%
These rates are outlined to encompass a wide range of services offered by the hospitality sector, ensuring that all aspects of the industry are covered under the appropriate taxation structure. The uniform tax rate of 13% across various services reflects an effort to simplify the tax regime and provide businesses with a clear understanding of their tax liabilities.
The hospitality industry plays a vital role in the economic landscape, contributing significantly to employment and economic growth. The SRB’s decision to release the updated tax rates well in advance of the tax year 2024 is a proactive measure aimed at assisting businesses in their financial planning and compliance efforts.
Business owners in the hospitality sector are encouraged to familiarize themselves with the new tax rates and ensure compliance with the regulations outlined by the SRB. This step is crucial not only for the businesses themselves but also for maintaining a fair and efficient taxation system that supports government revenue and facilitates economic development.
The SRB remains committed to fostering an environment of transparency and predictability in the tax system, and the release of these rates is a testament to their dedication to these principles. As the tax year 2024 unfolds, businesses in the hospitality sector will navigate these rates, and the impact on the industry will become clearer in the coming months.
