SRB says 3pc tax rate still on specific education, health services

In response to some media reports that claimed that the Sindh government has imposed in the budget the standard sales tax of 15 per cent on the services of health and educational institutes, the Sindh Revenue Board (SRB) has clarified that the Sindh Finance Bill 2024 specified 15 per cent as the standard sales tax rate and if the government decides, the rate can be reduced and that will be published in the gazette notifications separately.

In a notification issued on June 16, the SRB stated: “Sindh Finance Bill, 2024 does not immediately impose a 15% SST on health and education services.” The notification added that the taxation on specific services within the health and education sectors is at a reduced rate of 3 per cent as approved by the Sindh cabinet.

The SRB stated that soon after the finance bill became an Act of the Sindh Assembly, the reduced tax rates applicable to the education and health sectors would be formally notified.

“The Government of Sindh remains committed to ensuring accessible and affordable health and education services for all residents of the province,” the revenue board said in the notification.