Sindh govt imposes stamp duty on domestic, international air tickets

KARACHI: The Sindh government has announced the imposition of a new stamp duty on air tickets, both domestic and international, as part of its efforts to generate additional revenue.

According to the notification issued on Monday, the stamp duty will be Rs50 per domestic ticket and Rs400 per international ticket.

Notifications have been sent to six Pakistani and four foreign airlines, instructing them to collect this stamp duty on behalf of the provincial government. This measure is anticipated to bring significant revenue to the province.

This new levy was proposed in the Sindh provincial budget for 2024-25, which initially suggested a duty of Rs250 for domestic tickets and Rs1,000 for international tickets.

Presenting the budget, Chief Minister Murad Ali Shah introduced various taxes on air tickets, properties, and businesses, citing the numerous challenges the province has faced over the past five years.

The provincial government has also made several amendments to the Stamp Act and the GST on Services Act. Additionally, a three per cent tax on the assessed value of lands, shops, and residential flats in the real estate market has been proposed.

The amendment specifies, “At the rate of two per cent of the valuation table or declared value recorded in the instrument, whichever is higher,” for properties transferred to and from Real Estate Investment Trusts.

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