Sindh govt to impose sales tax on education, health services and doctors

The Sindh government is all set to impose a sales tax on expensive private schools, hospitals, and doctors to increase government revenue.

As per details, in the budget for 2024-25, the provincial government has proposed a 3% sales tax on educational institutions charging more than Rs 500,000 annually in fees. Furthermore, private hospitals charging Rs 25,000 daily for private rooms and doctors billing over Rs 3,000 will also be taxed at 3%.

The Sindh Assembly has not yet voted on these budget suggestions. It won’t be difficult for the ruling Pakistan People’s Party (PPP) to pass these plans, though, as they have a one-third majority in the assembly.

The sales tax on hospitals and private schools will go into force on July 1st if it is approved.

Chief Minister Syed Murad Ali Shah announced this during Thursday’s session of the provincial assembly.

The finance minister, Shah, made it clear that schools that charge Rs42,000 a month will be subject to taxes, with the money collected going toward funding the education sector. Additionally, he promised the families of Karachi street crime victims one million rupees in compensation.

The Sindh Revenue Board defended the levy in the face of criticism, emphasizing how it helps to address stakeholder concerns and secure long-term funding for health and education.