The Sindh government has proposed new taxes in its annual budget for the fiscal year 2024-25, covering various sectors. Under the Finance Bill presented by Sindh Chief Minister Murad Ali Shah in the provincial assembly, several amendments and additions to tax laws have been outlined.
The proposals include a Rs250 tax on domestic air tickets and Rs1,000 on international air tickets. Additionally, a three percent tax on the determined value of real estate properties such as lands, shops, and residential flats has been suggested. Amendments to stamp duties and GST on services have also been incorporated.
Furthermore, the budget introduces taxes and duties on transactions related to immovable properties, partnerships, insurance policies, and agreements for public sale projects. For instance, there are proposed taxes on the sale or transfer of vehicles, ranging from Rs1,000 to Rs5,000 depending on the transaction type. Stamp duties on documents like power of attorney and agreements have been set at Rs7,000 and Rs5,000 respectively.
In terms of vehicles, varying taxes have been proposed based on engine capacity and whether they are imported or locally assembled. GST on services has been increased from 13% to 15%, now encompassing additional sectors like educational and medical services, as well as services provided by pet-related establishments.
The budget also introduces penalties for non-compliance, such as a penalty of up to Rs1 million for businesses failing to install an e-invoicing system, and subsequent sealing for repeat offenses. Delays in sales tax payments will incur additional penalties.
Overall, these measures are part of the Sindh government’s efforts to generate revenue and address fiscal challenges in the province.
