Govt allays fears about 15% sales tax on health, education services
The government has also introduced a new definition of tax fraud, which now includes the intentional evasion of legally due tax or obtaining an undue refund by submitting false documents, false returns, or withholding correct information. photo: REUTERS
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%.