Govt allays fears about 15% sales tax on health, education services

Sindh Revenue Board says it clarifies that the Finance Bill specifies the standard rate (15%) of SST

Reports have appeared in certain sections of the Press that the Sindh Government has imposed, through the Sindh Finance Bill, 2024, Sindh Sales Tax (SST) at the standard rate of 15% on the services of hospitals, medical practitioners (doctors) and educational institutions.

The Sindh Revenue Board in its statement said that it is clarified for general information that the Finance Bill specifies the standard rate (15%) of SST as a scheme of specifying the taxable services. However, the effective rates (reduced rates, if any, as per the government decision) are published in the Gazette notifications separately.

However, specific services within the health and education sectors, as approved by the Sindh Cabinet, are proposed to be subjected to taxation at reduced rate of 3%.