KARACHI, Jun 14 (APP): In the budget 2024-25, Sindh government has proposed to enhance the standard rate of Sindh Sales Tax (SST) from 13% to 15% to harmonize the tax rates with other Service Tax Administrations in Pakistan.
Sindh CM Syed Murad Ali Shah, in his budget speech delivered on the floor of the provincial Assembly on Friday, said that 2% increased was proposed in SST, however the exemptions and reduced rates of SST, where notified, shall remain effective.
To promote digitalization in the economy, it was proposed to reduce SST rate to 8% for the restaurant services involving customers’ payments through digital means like debit/credit card, mobile wallet, QR Scanning, etc.
For promoting the Telecom services which pay high rate of 19.5% SST but utilize input items paying Federal Sales Tax of up to 18% (which was previously 17%), it is proposed to allow them the input tax credit of up to 18% instead of 17% as at present, he said.