Karachi, January 29, 2024 – The Sindh Revenue Board (SRB) has issued the prevailing sales tax rates on property transfer services for the tax year 2024, as outlined in the updated Sindh Sales Tax on Services Act, 2011.
The tax rates for various property-related services are as follows:
1. Purchase or Sale or Hire of Immovable Property: 13%
2. Property Dealers: 13%
3. Renting of Immovable Property Services: 13%
Additionally, the tax rate for services provided or rendered by property developers or promoters, encompassing the development of purchased or leased land for conversion into residential or commercial plots and the construction of residential or commercial units, stands at 13%.
These adjustments in tax rates aim to streamline and align the taxation framework with the prevailing economic conditions and market dynamics. It is crucial for stakeholders, including property buyers, sellers, developers, and dealers, to be aware of these updated tax rates to ensure compliance with the law.
The 13% tax rate on the purchase or sale of immovable property, property dealer services, and renting of immovable property services signifies the financial commitment involved in property transactions. Property buyers, sellers, and dealers are advised to factor in these tax implications while planning and executing property transactions in Sindh during the tax year 2024.
The tax rate for services provided by property developers or promoters is particularly relevant for those involved in the development and construction sectors. This includes activities such as developing purchased or leased land for conversion into residential or commercial plots and the construction of residential or commercial units. The 13% tax rate on these services underscores the fiscal responsibility associated with property development projects.
While these tax adjustments may impact the overall cost structure of property-related transactions, they contribute to the government’s revenue collection efforts. The revenue generated from these taxes can be vital for financing public services, infrastructure development, and other socio-economic initiatives in the region.
Stakeholders are encouraged to stay informed about these tax rate updates and seek professional advice if needed to navigate the complexities of property-related transactions in compliance with the revised tax regulations. The Sindh Revenue Board continues to play a crucial role in ensuring effective tax administration and facilitating a transparent and accountable taxation system in the province.
