Business Desk 
Jun 13, 2025
The Sindh government has announced a major boost in revenue targets for the next financial year, with the Sindh Sales Tax on Services (SST) expected to bring in Rs300 billion, a 35% increase compared to FY2024.
The announcement came during Chief Minister Murad Ali Shah’s budget speech for FY2025-26, where he called SST the “mainstay” of Sindh’s own revenues. The tax applies to a wide range of services including hospitality, telecom, construction, and professional services.
To simplify tax 'collection' and limit disputes, the government is moving to a negative list regime, under which all services are taxable, except for some essential and social services, which will be exempt (or may be taxed at a lower rate).
"This transition would help facilitate transparency and ease for the businesses," Shah stated.
To the citizens' immense relief, the Sindh government has proposed to eliminate five taxes, the professional tax, cotton fee, entertainment duty, local cess and drainage cess.
These changes, according to the Chief Minister (CM), will reduce the burden for salaried individuals, farmers and small businesses.
The government has even reduced the annual motor vehicle tax for commercial vehicles to Rs1,000 to help transporters and goods carriers. And it is suggesting the elimination of the third-party insurance requirement for motorcyclists. The mutation fee and sales certificate fee are reduced to Rs500.
Presently Sindh Sales Tax imposes a general tax of 15%, and telecom services are taxed at 19.5% according to the Sindh Revenue Board. Some services are already taxed at a lower rate.
