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Sindh Government Implements 15% Sales Tax on Restaurants for Tax Year 2025

  • Sindh government imposes 15% sales tax on restaurant services
  • Reduced rate of 8% for payments made via debit/credit cards, mobile wallets, or QR scanning
  • Exemptions from sales tax for restaurants with turnover not exceeding 2.5 million rupees
  • Exemptions do not apply to air-conditioned restaurants, establishments within hotels, franchisees, etc.
  • Tax aimed at enhancing provincial revenues and encouraging digital payments
  • Expected mixed impact on restaurant industry, with smaller establishments benefiting
  • Restaurant owners in Sindh urged to comply with new tax regulations to avoid penalties
  • Long-term effects on consumer behavior and hospitality sector growth remain to be seen

Source: pkrevenue.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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