The Sindh government has proposed taxes on air tickets, both domestic and international, properties, and businesses in its annual budget for the fiscal year 2024-25.
According to the Finance Bill, the PPP-ruled province has decided to impose a Rs250 tax on air tickets issued by airlines for domestic flights and Rs1,000 on air tickets for international flights.
Sindh Chief Minister Murad Ali Shah, who presented the budget in the Sindh Assembly session on Friday, said the province faced a lot of challenges over the last five years.
The government has made several amendments to the Stamp Act and GST on Services Act, as per the Bill.
Moreover, the provincial government has proposed a three per cent tax on the determined value of lands, shops, and residential flats in the real estate market. “At the rate of two per cent of the valuation table or declared value recorded in the instrument whichever is higher,” said the amendment on the properties to and from the Real Estate Investment Trusts.
The same duty would be applied to the transfer of lease by way of assignment.
An Rs5,000 tax has been proposed on allotment orders or issuance or renewal of sanads by the government. The same amount of tax has also been proposed on the acknowledgement or receipt of money or any other consideration relating to immovable property.
The law related to the agreement or memorandum of an agreement has also been amended. The province has also sought Rs1,000 on the “sale or transfer of a regional motor vehicle; sale or transfer of immovable property; or; re-conveyance of mortgage property.”
It has proposed Rs5,000 on the agreement “if relating to the execution of an agreement between the builder, developer, and/or allottee for booking of apartment, shop, house, officer, or plot in a public sale project approved by the Sindh Building Control Authority.”
Furthermore, a Rs1,000 tax “if not otherwise provided for.”
In addition to this, a stamp duty worth Rs5,000 would be charged on the partnership or dissolution of the partnership.
The government aims to charge a Rs5,000 stamp duty on the renewal of marine vessel insurance policies in the province. Additionally, a Rs500 tax has been proposed on the renewal of all other insurance policies, such as those covering buildings, crops, and real estate, as well as life and health insurance.
It has also proposed a Rs500 tax on the renewal of fire-insurance and other classes of insurance, not otherwise included in Article 26, covering goods, merchandise, personal effects, crops, and other property against loss or damage.
The government has introduced a Rs7,000 stamp duty on issuance of power of attorney (POA) for immovable properties.
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The provincial government has proposed different taxes on imported and locally assembled or manufactured vehicles.
| Vehicle | Amount |
|---|---|
| Imported motor car/jeeps etc with engine capacity 3000cc and above | Rs450,000 |
| Imported motor car/jeeps etc with engine capacity 2000cc to 2999cc | Rs275,000 |
| Imported motor car/jeeps etc with engine capacity 1500cc to 1999cc | Rs100,000 |
| Locally manufactured or assembled motor cars/jeeps with engine capacity 2000cc and above | Rs50,000 |
| Locally manufactured or assembled motor cars/jeeps with engine capacity 1500cc to 1999cc | Rs25,000 |
The Sindh government has increased the rate of services GST from 13% to 15% and has also expanded the scope of GST on services to several new sectors.
Under the Sindh Sales Tax on Services Act, GST is already being collected on services provided by restaurants, hotels, wedding halls, management services, airport services, and warehouses, among others. This tax was previously being collected at a rate of 13%.
But Sindh Chief Minister Syed Murad Ali Shah announced during the presentation of the provincial budget on Friday that the rate of GST on services is being increased to 15%.
According to the Sindh Finance Bill, three additional sectors have been included under the GST on services, which are: educational services, hospital and clinic services, and services provided by pet-related establishments.
The existing list has also been amended to include farmhouses along with guest houses. Similarly, the category of professional services has been expanded to include medical practitioners and consultants, meaning their services will also be subject to GST on services.
The Act has been amended to include all kinds of sports services, which were previously only applicable to indoor sports and game centres.
A penalty of up to Rs1 million has been proposed for businesses that fail to install an e-invoicing system, and in case of a second offence, the business will be sealed.
Individuals who delay in depositing the Sales Tax on Services will be required to pay an additional amount equal to the unpaid tax or Rs100,000, whichever is higher.
| Net weight of goods | Rate of Cess along with distance |
|---|---|
| Up to 1,250kg | 1.80% of total value of goods as assessed by the Custom authorities plus one paisa per kilometre |
| Exceeding 1,250kg but not exceeding 2,030kg | 1.81% of total value of goods as assessed by the Custom authorities plus one paisa per kilometre |
| Exceeding 2,030kg but not exceeding 4,060kg | 1.82% of total value of goods as assessed by the Custom authorities plus one paisa per kilometre |
| Exceeding 4,060kg but not exceeding 8,120kg | 1.82% of total value of goods as assessed by the Custom authorities plus one paisa per kilometre |
