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Sindh Approves Rs 3.45 Trillion Budget for FY2025-26
Sindh Assembly passes Rs 3,450bn budget for FY2025-26, slashes Rs 8bn in judicial allowances, abolishes professional & entertainment taxes, offers major relief to farmers & transporters.
ND
by News Desk
2025-06-26
Sindh Approves Rs 3.45 Trillion Budget for FY2025-26

The Sindh Assembly has approved a budget of Rs 3,450 billion for the fiscal year 2025-26, alongside the supplementary budget and Finance Bill 2025-26, incorporating wide-ranging tax reforms, relief measures for farmers, transporters, and citizens, and the abolition of seven key laws.

In a rare show of unity, members from both the government and opposition agreed to slash Rs 8 billion from judicial staff allowances, citing the unsustainable financial burden of excessive perks. The total judiciary budget stood at over Rs 29.2 billion.

Agriculture Relief and Tax Cuts

Chief Minister Syed Murad Ali Shah announced significant relief for the agriculture sector, citing severe declines in major crop outputs — wheat (−8.9%), maize (−15.4%), sugar (−3.9%), rice (−1.4%), and a 30.7% drop in cotton yield.

·       Cotton cess and drainage cess were abolished.

·       50% discount on sales, solvency, and inheritance certificates.

·       Commercial vehicle tax fixed at only Rs 1,000 annually.

Key Tax Reforms & Abolished Laws

Seven laws were either repealed or amended, including:

·       Stamp Act 1899

·       Motor Vehicles Act 1939

·       Sindh Entertainment Duty Act 1958 (Repealed)

·       Sindh Motor Vehicle Taxation Act 1958

·       Sindh Finance Act 1964 (Professional Tax Section Abolished)

·       Sindh Sales Tax on Services Act 2011

·       Sindh Local Government Act 2013 (Section 95 – Local Cess Abolished)

Cultural & Economic Incentives

Murad Ali Shah said the government aimed to make entertainment and cultural activities more accessible:

·       Cinemas, art councils, theaters, and water parks fully exempted from entertainment tax.

·       Professional tax worth Rs 5 billion abolished, benefiting employees, educational/medical institutions, bakeries, clinics, beauty salons, and more.

Sales Tax & Insurance Reforms

The Sindh Sales Tax system will shift from the positive list to the negative list, per agreements with the IMF and federal government, meaning all services will be taxed except those specifically exempted.

Key changes include:

·       No SST for businesses earning less than Rs 4 million annually.

·       Exemption threshold for restaurants and caterers raised to Rs 5 million, saving Rs 400 million/year.

·       Third-party motor insurance tax slashed from 15% to 5%.

·       Stamp duty on such insurance fixed at Rs 50.

Motorcycles are now exempt from compulsory insurance starting FY2025-26.

Development & Federal Grievances

CM Murad Ali Shah presented 188 budget proposals, while over 2,000 opposition cutback suggestions were rejected. He also declared that no new government vehicles would be purchased this year.

The Chief Minister lambasted the federal government, accusing it of discrimination against Sindh, claiming no development scheme was granted to the province in the past 10 years, unlike other provinces.
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