The Sindh government is all set to impose a sales tax on expensive private schools, hospitals, and doctors to increase government revenue.
As per details, in the budget for 2024-25, the provincial government has proposed a 3% sales tax on educational institutions charging more than Rs 500,000 annually in fees. Furthermore, private hospitals charging Rs 25,000 daily for private rooms and doctors billing over Rs 3,000 will also be taxed at 3%.
These budget proposals are yet to be passed in the Sindh Assembly. However, as the ruling Pakistan People’s Party (PPP) enjoys a one-third majority in the house, it will not be difficult for them to pass these proposals. If approved, the sales tax on private schools and hospitals will take effect from July 1st.
Chief Minister Syed Murad Ali Shah announced this during Thursday’s session of the provincial assembly. Shah, also the finance minister, clarified that schools charging Rs 42,000 monthly would be taxed, with revenues earmarked for the education sector. He also pledged Rs one million in compensation to families of Karachi street crime victims.
Despite criticism, the Sindh Revenue Board defended the tax, highlighting its role in securing sustainable funding for health and education while addressing stakeholder concerns.
