Sindh

Karachi-based contractors charged 6% more service tax

Contractors association decries discrimination

March 04, 2024

The newly constituted committee, under the chairmanship of an army general, will develop proposals for data integration for broadening the tax base, IT infrastructure transformation plan, showed the notification. photo: REUTERS

The Contractors Association of Pakistan (CAP) protested against the levy 11 per cent service tax in the contractors' bills for the Education Works Department.

The services tax is deducted at the rate of five per cent across Sindh, but the Sindh Revenue Board (SRB) is charging nine to 11 per cent from bills of contractors in Karachi.

The CAP office bearers termed the disparity in tax deduction a conspiracy against development works in Karachi.

Read: IMF pushes for broader tax increases

Sindh CAP Vice Chairman SM Naeem Kazmi, Chief Coordinator Sindh Saeed Mughal and spokesperson Karachi Contractors Association Aslam Mughal said that two separate laws have been enforced in the same province, 11 per cent services tax for Karachi and five per cent for the rest of the province. It is sheer discrimination, they said.

They urged CM Murad Ali Shah to take notice of the disparity in tax deduction.

Published in The Express Tribune, March 4^th, 2024.