KARACHI – The Sindh government has increased sales tax on restaurants, cafes, bakeries, marriages halls and others, with effect from July 1, to generate more revenue in fiscal year 2024-25. But, there is a benefit for those who hold debit and credit cards of any bank.

The provincial government has increased the Sindh Sales Tax by 2% to 15% as previously it was charging 13% in wake of sales tax.

Hotels, Guest Houses, Farms Houses, Cleaners and other business will also collect 15% tax from the customers during the new fiscal year.

Benefit on Payment through Debit or Credit Card

The government said those who will make payments through debit or credit cards will pay only 8% sales tax. It means people can get a benefit of 7% discount by paying bills through debit or credit cards.

Sindh Revenue Board said that the new tax rate has come into effect from July 1. It also warned that excuses such as absence of POS machine or error in it will not be accepted.

Last month, Chief Minister Murad Ali Shah unveiled a provincial budget of Rs2.244 trillion, including a development outlay of Rs410 billion.

At the Sindh Assembly, Mr. Shah, who also serves as the provincial finance minister, proudly presented the fifth budget of the current government. He claimed it was the best possible budget given the impacts of the unprecedented global recession, heavy rains, and floods in the country.