Provincial Revenue Authority Sindh Revenue Board (SRB) has stated that the provincial government has imposed 5% Sales tax on Ride Hailing Services effective from 1st July 2019.
Provincial Government of Sindh in the Budget for 2019-2020 declared that the services provided by Cab Operators including Rent-a-Car services will be taxable service.
Initially, a reduced 5% Sales tax rate is being imposed on the total composition of the Rent.
Provincial Revenue Authority believes that imposition of Sales tax at a reduced rate of 5% on Cab Services based on online platforms still provides them with a tax advantage. Sindh Revenu Board Representative mentioned that outside Pakistan, Online Ride Hailing Services pay service tax/sales tax/VAT in UK, India, Australia, EU etc where Tax rates are very high.