Sindh to collect sales tax on services from July 1

KARACHI: The Sindh Assembly unanimously passed the Sindh Sales Tax on Services Bill-2011 into law earlier this month, enabling the government to collect Sales Tax (ST) on services from July 1, which is likely to bring significant revenue to the government’s kitty.

According to sources, Sindh Revenue Board will collect taxes on taxable services including hotels, telecommunication, property buying and selling, courier and airport services.

No new ST on services would be imposed for the time being and Sindh would collect tax on services at the same 16 percent rate, sources added.

The Sindh Government has fixed the target of Rs25 billion for the next fiscal year to achieve.

The 18th amendment of the constitution gives the provinces authority to collect sales tax on services.