Sindh Govt imposes 19.5% Sales tax on internet and Broadband Services

According to the Sindh Revenue Board (SRB) Sindh Sales tax on internet and broadband services of up to 2 Mbps speed and of up to 4 Mbps speed, the charges for which did not exceed Rs 1500/- per month and Rs 2500/- per month, respectively, were exempt until 30th June, 2019. Other internet and broadband services were already paying SST at 19.5% and there is no change in the Sindh Budget-2019.

Sindh Govt imposes 19.5% Sales tax on Internet and Broadband Services

The said exemption has been withdrawn with effect from 1st day of July 2019. Now (effective 01-07-2019), all internet and broadband services, irrespective of its speed or charges shall pay Sindh sales tax at the statutory rate of 19.5%.

It is pertinent that the exemption of FED on internet and broadband services has also been withdrawn by the Federal Government wef 01-07-2019. Therefore in all areas of Pakistan outside Provinces (eg ICY, FATA, PATA & GB and also AJ&K which has adapted the FE Act, 2005), FED shall be chargeable at 17% on all internet and broadband services.

In Punjab, KP and Balochistan, Provincial sale tax on internet and broadband services were already payable at 19.5% (irrespective of the Mbps speed and irrespective of the amount charged)and the said levy continues unchanged in those Provinces too.