Sindh govt takes sales tax relief measures

Karachi, June 16, 2022: The government of Sindh in the budget 2022-23 has announced to extend various measures regarding sales tax to provide relief to the public.

The measures are:

Exemption from SST is being proposed for toll manufacturing services.

The 5% reduced SST rate for “Recruiting Agents” will continue for the next two years i.e. up to 30th June, 2024. This relief is proposed for Pakistanis aspiring to work overseas.

The rate of SST on commission charges received by food delivery channels (i.e. Foodpanda, Cheetay Logistics, etc.) from Home Chefs is proposed to be reduced from 13% to 8% for a period of two (2) years ending on 30th June, 2024. This relief is proposed in order to encourage small-scale businesses. In all other cases, the services provided or rendered by Commission Agents shall continue to be liable to SST at 13%.

The existing exemption on health insurance services is proposed to continue further for a period of one year till 30th June, 2023.

GIZ, a German development agency, facilitating development projects in Sindh, is proposed to be granted conditional exemption on Sales tax on services as indirect relief to the Public.

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