The government of Sindh has declared its intention to apply a sales tax of 3% to educational establishments that charge fees over Rs 500,000 per annum.
Moreover, a three percent tax will be levied on doctors who bill more than Rs3,000 and private hospitals that charge Rs25,000 per day for private rooms. This was declared by Chief Minister Syed Murad Ali Shah during the provincial assembly meeting on Thursday.
The plan, which was part of the 2024–25 Sindh budget, is awaiting approval from the provincial legislature. As of July 1, the Sindh Revenue Board is expected to begin collecting taxes.
Finance Minister Shah confirmed that schools charging Rs 42,000 a month will be subject to taxes, with the money collected going towards funding the education sector. Additionally, he promised the families of Karachi street crime victims compensation of Rs. 1 million.
The SRB defended the tax in the face of opposition, stressing its importance in ensuring long-term funding for healthcare and education while taking stakeholder concerns into account.
A proposal included in the budget for the state of Sindh for the fiscal year 2024–2025 called for placing doctors, private hospitals, and educational institutions into the sales tax net. The Sindh Revenue Board will begin collecting taxes on July 1 following the provincial assembly’s adoption of the budget.
Legislators were informed by CM Shah, who also oversees the finance ministry, that all schools charging more than Rs. 42,000 a month will face taxes.
He declared that the education department will receive the taxes collected from private schools.
He went on to say that the heirs of those slain in Karachi street crimes would receive compensation from the Sindh government in the amount of Rs. one million.
The SRB had responded to criticism of the tax plan by saying that any new taxes will be introduced with the intention of supporting long-term funding for the education and health sectors while taking stakeholders’ concerns into account.
