The Contractors Association of Pakistan (CAP) criticized the 11 percent service tax levied on contractors’ invoices for the Education Works Department.
The services tax is deducted at a rate of 5% in Sindh, however the Sindh Revenue Board (SRB) charges nine to eleven percent on contractor bills in Karachi.
The CAP office bearers described the gap in tax deduction as a plot against Karachi’s development projects.
Sindh CAP Vice Chairman SM Naeem Kazmi, Chief Coordinator Sindh Saeed Mughal, and spokesman Karachi Contractors Association Aslam Mughal all said that two independent laws had been implemented in the same province: 11% services tax for Karachi and 5% for the rest of the province. They described it as pure discrimination.
They requested Chief Minister Murad Ali Shah to take notice of the discrepancy in tax deductions.