Pakistan, June 14 -- The Sindh government has announced major tax reforms in its FY2025-26 budget to support businesses and boost revenue. It plans to reduce the sales tax on services from 10% to 8%, cutting it by 2%. This reduction aims to simplify the tax system and reduce the financial pressure on both businesses and consumers.

In a significant shift, Sindh will move from the current Positive List system to a Negative List system for sales tax on services. Under this new approach, all services will be taxable except those explicitly exempted. This change is expected to widen the tax base, minimize disputes, and reduce legal cases related to taxability.

Currently, the Positive List taxes only selected services, causing confusion and f...