Starting today, the Sindh government has implemented a 2% increase in the Sales Tax on services. This change affects several sectors including hotels, farmhouses, restaurants, caterers, and wedding halls. With this new increase, the Sindh Sales Tax (SST) rate for these businesses has risen from 13% to 15%.
In addition to these businesses, the tax hike will also impact guest houses, farmhouses, and clubs, which will now face higher SST rates. This adjustment is part of the new financial measures for the fiscal year 2024-25. The government has decided to expand the General Sales Tax (GST) coverage to include more sectors, aiming to increase revenue from a broader range of services.
As part of these fiscal changes, the government has also introduced new taxes on both domestic and international air tickets. This means that travelers will now have to pay additional taxes when booking flights, whether they are flying within Pakistan or to international destinations.
These changes are intended to boost the government’s revenue but are expected to impact businesses and consumers alike. Hotels, restaurants, and other service providers will have to adjust to the higher tax rates, which could lead to increased costs for their customers. Travelers will also face higher expenses due to the new taxes on air tickets.
