July 22, 2024 Karachi, July 22, 2024 – The Sindh government has announced a 15% sales tax on services provided by travel agents and tour operators for the tax year 2024-25. This decision, formalized through the provincial Finance Act, 2024, marks an increase in the sales tax rates for these services. Travel Agents: The sales tax rate on services provided by travel agents is now set at 15%. However, the government has introduced a provision allowing travel agents to opt for a reduced sales tax rate of 5%. This reduced rate comes with the condition that the input tax credit or adjustment will not be admissible. This measure is intended to offer some relief to travel agents while ensuring compliance with the new tax regulations. Tour Operators: Similarly, tour operators will also be subject to a 15% sales tax on their services. A reduced rate of 5% is available to tour operators under the same condition that the input tax credit or adjustment is not admissible. Additionally, the Sindh government has provided an exemption from sales tax on services related to Hajj and Umrah tour packages. This exemption aims to support the significant number of pilgrims traveling for these religious duties by reducing their financial burden. The introduction of these…