Sindh Budget 2024-25: Sales Tax Up by 2%, Digital Transactions Get Tax Relief

The Sindh government unveiled its provincial budget for the fiscal year 2024-25 on Friday, outlining several tax measures, including a rise in the sales tax rate and incentives for digital payments.

Key Changes:

  • Sales Tax Increase: The standard Sindh Sales Tax (SST) rate will increase from 13% to 15%, aligning with other provinces and promoting tax rate harmonization across Pakistan.
  • Exemptions Remain: Existing exemptions and reduced tax rates for specific services will continue.
  • Digital Payment Boost: To encourage digital transactions, the SST rate for restaurant bills paid via debit/credit cards, mobile wallets, or QR codes will be reduced to 8%.
  • Telecom Sector Relief: The Sindh government proposes raising the input tax credit for telecom companies from 17% to 18%, potentially lowering the overall tax burden on telecom services.

Benefits of the Budget:

  • Increased Revenue: The sales tax hike is expected to generate additional income for the Sindh government, funding development initiatives and public services.
  • Digitalization Push: The budget aims to stimulate the use of digital payment methods in the economy.
  • Support for Telecom Sector: Proposed measures offer some tax relief to the telecom industry.


The proposed tax changes will take effect on July 1st, 2024, subject to approval by the Sindh Assembly.

Overall, the Sindh budget for 2024-25 prioritizes tax system modernization and economic growth through promoting digitalization and implementing fairer tax policies.

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