SRB Clarifies Misreported 15% Sales Tax on Health and Education Services in Sindh

• The Sindh Revenue Board (SRB) addressed reports about a 15% sales tax on health and education services in Sindh.
• Media incorrectly reported that the Sindh Finance Bill, 2024 imposes a 15% Sindh Sales Tax (SST) on hospitals, medical practitioners, and educational institutions.
• The SRB clarified that the Finance Bill specifies a 15% SST as a framework, not an immediate application to all services.
• Effective rates, including reduced rates, will be published separately in gazette notifications.
• The Finance Bill, 2024 outlines a standard rate framework but proposes a reduced tax rate of 3% for health and education services.
• Reduced rates for taxable services will be announced once the Bill is enacted by the Provincial Assembly of Sindh.
• The government aims to maintain accessible and affordable health and education services.
• Tax measures are intended to ensure sustainable funding while considering the impact on stakeholders.
• The SRB’s clarification aims to alleviate concerns about the financial burden of higher tax rates on essential services.
• Stakeholders are advised to await official gazette notifications for precise tax rate details.

Source: pkrevenue.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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