Sindh to Impose Sales Tax on Private Schools, Hospitals and Doctors

The Sindh government has announced plans to impose a 3% sales tax on educational institutions charging more than Rs500,000 annually in fees.

Furthermore, private hospitals asking Rs25,000 daily for private rooms and doctors billing over Rs3,000 will also be taxed 3 percent. Chief Minister Syed Murad Ali Shah announced this during Thursday’s session of the provincial assembly.

The proposal, included in the Sindh budget for 2024-25, awaits provincial assembly approval, with the Sindh Revenue Board slated to start tax collection from July 1.

Shah, also the finance minister, clarified that schools charging Rs42,000 monthly would be taxed, with revenues earmarked for the education sector. Furthermore, he also pledged Rs1 million compensation to families of Karachi street crime victims.

Despite criticism, the SRB defended the tax, highlighting its role in securing sustainable funding for health and education, while addressing stakeholder concerns.

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