A longstanding issue of Sales Tax on services was resolved by the 7th NFC Award. Sales Tax on Services is a Provincial tax; it was provincial subject in the 1973 Constitution. Sales Tax on Services was enforced by the Sales Tax on Services Ordinance, 2000 and jurisdiction was given to the Federal Government to collect Sales Tax on Services on behalf of all the four provinces.
It was agreed by the representatives of all four provinces in the recent NFC Award that provinces should on their own collect Sales Tax on Services. At that time, Sales Tax on Services was collected in the Federal Excise Duty mode, which should have been taxed under the provincial law. In 2010, the Assembly approved the Sindh Revenue Board Act, 2010 to form Sindh Revenue Board to attain jurisdiction to levy, charge and collect Sales Tax on Services. This Bill repeals the Ordinance of 2000.
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