Sindh govt imposes 19.5% sales tax on internet.

Byline: Usman Hani

KARACHI -- Internet and broadband services, which are considered basic necessities and the backbone of developed economies worldwide, are going to become expensive in Sindh as the provincial government has slapped sales tax on them.

'The Sindh Revenue Board has withdrawn the exemption of sales tax on services from internet and/or broadband services with effect from July 1, 2019,' said a notification of the Sindh Revenue Board (SRB).

The notice has informed service providers that from July 1, all internet and broadband customers, irrespective of their speed or charges, will pay sales tax at the statutory rate of 19.5%.

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'Internet and broadband services of up to 2 mbps speed and 4 mbps speed, the charges for which did not exceed Rs1,500 per month and Rs2,500 per month respectively, were exempt from sales tax, the said exemption has been withdrawn with effect from July 1, 2019,' added the notice.

The notice pointed out that in 2011, the internet and broadband services were given exemption from sales tax while in 2013 and 2016, notifications were issued for the imposition of partial sales tax on digital services.

When the SRB was contacted, an official on condition of anonymity said sales tax on internet and broadband services had already been imposed in...