Sindh Chief Minister Syed Murad Ali Shah has announced an ambitious set of relief measures as part of its Budget Estimates for the fiscal year 2025\u201326, aimed at boosting economic activity, supporting struggling sectors, and easing the burden on the general public.<\/p>\n
In addition to relief proposed under the Finance Bill, several key concessions have already been finalised via notifications and amendments to existing rules and laws. The measures span tax and non-tax areas, targeting sectors including agriculture, transport, health, education, and small businesses.<\/p>\n
Relief Measures:<\/p>\n
Agriculture Sector Relief<\/p>\n
\u2022 Abolition of Cotton Fee: Following a sharp 30.7% decline in cotton production and sluggish agriculture growth (0.56%), the cotton fee has been abolished to support farmers.<\/p>\n
\u2022 Abolition of Drainage Cess: To mitigate the impact of adverse weather and reduced cultivation, the government has eliminated the drainage cess. Major crop yields such as wheat (-8.9%), sugarcane (-3.9%), maize (-15.4%), and rice (-1.4%) have all seen significant drops this year.<\/p>\n
50 per cent Reduction in Various Revenue Charges:<\/p>\n
\u2022 Mutation Fee<\/p>\n
\u2022 Certified Copies<\/p>\n
\u2022 Sales Certificate<\/p>\n
\u2022 Solvency Certificate<\/p>\n
\u2022 Heirship Certificate<\/p>\n
Flat Annual Tax for Commercial Vehicles<\/p>\n
\u2022 The yearly tax for commercial vehicles has been slashed to just Rs. 1,000, providing major relief to transporters and logistics operators.<\/p>\n
Major Legislative Reforms Under Finance Bill 2025\u201326: The chief minister proposed amendments or repeal of seven relevant laws, which the assembly approved. They include:<\/p>\n
1. Stamp Act, 1899<\/p>\n
2. Motor Vehicles Act, 1939<\/p>\n
3. Sindh Entertainment Duty Act, 1958 (Repealed)<\/p>\n
4. Sindh Motor Vehicle Taxation Act, 1958<\/p>\n
5. Sindh Finance Act, 1964 \u2013 Section 11 (Professional Tax Abolished)<\/p>\n
6. Sindh Sales Tax on Services Act, 2011<\/p>\n
7. Sindh Local Government Act, 2013 \u2013 Section 95 (Local Cess Abolished)<\/p>\n
Measures for direct public benefit:<\/p>\n
\u2022 Stamp Duty Reduced: Stamp duty on third-party motor insurance is now just Rs. 50.<\/p>\n
\u2022 Motorcycle Insurance Exemption: Two-wheeler vehicles are exempted from the mandatory insurance requirement from FY 2025\u201326.<\/p>\n
\u2022 Entertainment Duty Abolished: The entire sector, including cinemas, drama theatres, art councils, water parks, and cultural events, will now be tax-free, promoting affordable leisure and cultural enrichment.<\/p>\n
Major Reductions in Motor Vehicle and Professional Taxes<\/p>\n
\u2022 Motor Vehicle Tax for Commercial Vehicles: Brought down to Rs. 1,000 per year, easing operational costs for goods transporters and public transport providers.<\/p>\n
\u2022 Professional Tax Abolished: A wide range of professionals and businesses will benefit from the Rs. 5 billion relief, including:<\/p>\n
o Government and private sector employees<\/p>\n
o Educational and medical institutions<\/p>\n
o Bakeries, jewellers, transporters, clinics, salons, and more<\/p>\n
Sindh Sales Tax (SST) Reforms: Sindh Chief Chief Minister Syed Murad Ali Shah said that under commitments made in the National Fiscal Pact (NFP) 2024 with the Federal Government and the IMF\u2019s Extended Fund Facility, Sindh is transitioning from a Positive List regime to a Negative List – meaning all services will be taxable unless specifically exempt.<\/p>\n
Newly Exempt Services (Negative List Includes):<\/p>\n
\u2022 Passenger transport (road)<\/p>\n
\u2022 Social care services<\/p>\n
\u2022 Libraries, archives, and news agencies<\/p>\n
\u2022 Cleaning services<\/p>\n
\u2022 Agricultural storage and insurance<\/p>\n
\u2022 Property leasing for religious\/agricultural use<\/p>\n
\u2022 Veterinary and R&D services<\/p>\n
Reduced Rates for Key Services:<\/p>\n
\u2022 Online taxi services: 5%<\/p>\n
\u2022 Bus station services: 5%<\/p>\n
\u2022 Insurance (motor vehicles): 5%<\/p>\n
\u2022 Educational services (above Rs. 500,000 per student): 3%<\/p>\n
\u2022 Healthcare (above Rs. 3,000 per session): 3%<\/p>\n
\u2022 Freight transport services: 8% (3% for specific goods)<\/p>\n
Exemption Threshold Raised for Small Businesses:<\/p>\n
\u2022 Sales tax exemption now applies to businesses with an annual turnover below Rs. 4 million.<\/p>\n
\u2022 Restaurants and caterers\u2019 exemption threshold increased from Rs. 2.5 million to Rs. 5 million, providing Rs. 400 million relief annually.<\/p>\n
Reduction in SST Rate from 10% to 8% for several service sectors, benefiting:<\/p>\n
\u2022 Beauty parlors<\/p>\n
\u2022 Security services<\/p>\n
\u2022 Franchise\/IPR services<\/p>\n
\u2022 Sports centers<\/p>\n
\u2022 Janitorial services<\/p>\n
Third-Party Motor Insurance Tax Slashed: From 15% to 5% to encourage broader insurance coverage.<\/p>\n
Support for Farmers and Growers<\/p>\n
\u2022 Local Cess Abolished: Eliminating this tax under the Sindh Local Government Act will lower production costs and improve agricultural profitability.<\/p>\n
Chief Minister Murad Ali Shah said that these sweeping relief measures by the Sindh Government signal a pro-growth, pro-people fiscal policy, prioritising economic stimulation, reduction of regressive taxes, and empowerment of key sectors such as agriculture, transport, and small enterprises. \u201cThe 2025\u201326 budget is being seen as a crucial step toward resilience, equity, and sustainable development in the province,\u201d he concluded.<\/p>\n","protected":false},"excerpt":{"rendered":"
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