KARACHI: The Sindh Revenue Board (SRB) has reduced sales tax on motorcycle ride-hailing services from 5 percent to 2 percent in a move aimed at providing relief to commuters and supporting the expansion of digital transport platforms amid rising inflation.
According to an official notification issued by the SRB, the reduced tax rate will apply to passenger transport services provided by owners or drivers of two-wheeler vehicles operating through cab aggregator platforms under CPC Code 64115.
The concession has been granted under Section 8(2) of the Sindh Sales Tax on Services Act, 2011 after approval from the Sindh government.
Under the revised taxation framework, the 2 percent sales tax will be charged only on the net passenger fare and will not apply to commissions or service charges collected by ride-hailing aggregator companies.
However, the reduced tax rate will not cover motorcycle-based delivery services, cargo transportation or goods movement operations carried out through digital platforms.
The SRB clarified that cab aggregator companies will continue to remain responsible for compliance obligations and liabilities under the Sindh Sales Tax Special Procedure Rules, 2019 related to ride-hailing services.
The notification came into effect on May 25, 2026.
Earlier this month, the reduction in sales tax was approved during a Sindh cabinet meeting chaired by Chief Minister Syed Murad Ali Shah.
The chief minister said the provincial government was committed to promoting economic activity while providing direct financial relief to citizens affected by inflation and economic challenges.
Industry experts believe the lower tax rate could reduce ride fares for passengers and encourage wider use of motorcycle ride-hailing services, especially in Karachi, where digital two-wheeler transport platforms have witnessed significant growth in recent years.
Analysts also noted that the move could strengthen documentation of the informal transport sector by encouraging more riders and operators to work through regulated digital aggregator systems.
