July 23, 2024 Karachi, July 23, 2024 – The Sindh government has announced a conditional sales tax exemption for services provided by beauty parlors and beauty clinics, according to the Sindh Revenue Board (SRB). The SRB, the provincial revenue collecting agency, issued a working tariff for the tax year 2024-25, detailing the conditions under which these exemptions apply. Details of the Sales Tax Exemption The sales tax exemption applies to the following services: 1. Hair Cutting, Hair Dressing, Hair Dyeing, and Shaving: o Providers of these services are exempt from sales tax provided they do not offer any other beauty treatments, beauty care, or related services typically offered by beauty parlors or clinics. 2. Beauty Parlors or Clinics and Slimming Clinics with Turnover Below Rs. 2.5 Million: o Services rendered by beauty parlors, beauty clinics, and slimming clinics whose annual turnover does not exceed Rs. 2.5 million are exempt from sales tax. Conditions for Exemption However, the SRB specified several conditions under which the exemption would not apply: 1. Location: o Beauty parlors, clinics, and slimming clinics located within the premises of hotels, motels, guest houses, or clubs whose services are liable to tax are not eligible for the exemption. 2. Franchise Status: o Franchisers or franchisees do not qualify for the exemption. 3. Multiple Outlets: o Businesses with branches or more than one outlet in Sindh are not eligible. 4. Utility Bills: o If the total utility bill (electricity, gas, and telephone) exceeds Rs. 25,000 in any month during a financial year, the exemption does not apply. Standard and Reduced Sales Tax Rates The SRB has maintained the standard sales tax rate at 15% for services provided by beauty parlors, beauty clinics, and slimming clinics. However, a reduced rate of 10% is available under the condition that input tax credit or adjustment is not admissible. Further Reduced…