Monday, June 27, 2011

Sindh govt to collect sales tax on services from July 1st,2011

The Sindh Assembly unanimously passed the Sindh Sales Tax on Services Bill-2011 into law earlier this month, enabling the govt to collect Sales Tax (ST) on services from July 1 which is likely to bring significant revenue to the govt’s kitty.
Sindh Revenue Board will collect taxes on taxable services including hotels, telecommunication, property buying and selling, courier and airport services.
No new ST on services would be imposed for the time being and the province would collect tax on services at the same 16% rate, sources added.The Sindh Government has fixed the target of Rs25 billion for the next fiscal year to achieve.Under 18th amendment of the constitution provinces got authority to collect sales tax on services.