In a recent development, the Sindh government has proposed a 3% sales tax on certain private entities. Educational institutions with annual fees exceeding Rs500,000, private hospitals charging Rs25,000 per day for private rooms, and doctors billing over Rs3,000 will be subject to this tax. Chief Minister Syed Murad Ali Shah made this announcement during the provincial assembly session on Thursday.
The proposal forms part of the Sindh budget for 2024-25 and awaits approval from the provincial assembly. Tax collection by the Sindh Revenue Board is set to commence from July 1. Syed Murad Ali Shah, also serving as the finance minister, clarified that the tax revenues from schools with monthly fees of Rs42,000 and higher will be directed towards enhancing the education sector. Additionally, he pledged Rs.1 million in compensation for families affected by street crime in Karachi.
Despite facing criticism, the SRB has defended the tax, emphasizing its crucial role in ensuring sustainable funding for healthcare and education, while addressing concerns raised by stakeholders."