Sales tax to apply to private schools, hospitals, and doctors in Sindh.

The Sindh government has announced plans to implement a 3% sales tax on educational institutions that charge annual fees exceeding Rs500,000. Additionally, private hospitals will face a similar 3% tax if they charge Rs25,000 or more daily for private rooms, and doctors who bill over Rs3,000 per consultation will also be taxed. Chief Minister Syed Murad Ali Shah made this announcement during the provincial assembly session on Thursday.

These proposals, part of the Sindh budget for 2024-25, are pending approval by the provincial assembly, with tax collection by the Sindh Revenue Board expected to commence on July 1. Shah, who also serves as the finance minister, clarified that schools charging Rs42,000 monthly would be subject to the tax, with the generated revenue designated for the education sector. Additionally, he pledged Rs1 million in compensation to families of victims of street crimes in Karachi.

Despite facing criticism, the Sindh Revenue Board defended the tax, emphasizing its role in ensuring sustainable funding for health and education, while addressing concerns raised by stakeholders.

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