KARACHI: Sindh government in its annual budget for 2016-17 has recommended to levying 13 percent sales tax on any body part augmentation or reduction via plastic surgery while proposed cut in sales tax rate from 14 percent to 13 percent for the year 2016-17. Sindh Finance Minister Syed Murad Ali Shah has proposed to levy 13 percent sales tax on chartered flights services, consultancy services, public relation services, visa processing services, debt collection services, cosmetics, plastic and transplantation surgery and supply chain management services. In his budget speech, Shah said Sindh is the only province, which has gradually reduced the standard rate of sales tax. While the standard rate of sales tax is 17 percent in federation, 16 percent in Punjab and Islamabad Capital Territory (ICT) and 15 percent in Khyber Pakhtunkhuwa (KP) and Balochistan. He said Sindh reduced this rate from 16 percent to 15 percent in the fiscal year 2014-15 and 14 percent in 2015-16. Sindh believes that reduction in tax rates prompts tax compliance and increases revenue yield, he added. “We are proposing that the standard rate of Sindh sales tax to be reduced to 13 percent for the fiscal year 2016-17. Although this will cause loss of Rs 3.5 billion in revenues, a part of it will be made up by increasing efficiency of tax machinery in Sindh Revenue Board (SRB) and by adjusting the non-statutory rate of tax”, Shah added. According to a copy of a bill to enhance certain taxes and duties in the province of Sindh available with Daily Times, the Sindh government has proposed to include several services in sales tax net including cosmetics and plastic surgery. If the proposed 13 percent levy on the cosmetics and plastic surgery is approved, the services including aesthetics, cosmetics and plastic surgery like abdominoplasty, blepharoplasty (eyelid surgery), mammoplasty, rhinoplasty, liposuction, brow lift, cheek augmentation, facial implants, lip augmentation, forehead lift, cosmetics dental surgery, orthodontics, aesthetic dentistry, laser skin surfacing hair grafting, hair transplant and such other similar surgeries would be made costly in the Sindh province. Similarly, 13 percent sales tax has been proposed to be levied on debt collection services and other debt recovery services. The service provided by person to a banking company or financial company including non-banking financial company or any other firm or a person in relation to recovery of any amount due to such banking company or a financial institutions including non-banking financial company or any other body or person, in any manner are to be taxed by Sindh government from July 1st, 2016. Meanwhile, 13 percent sales tax on publication related services has been proposed by Sindh government. It includes strategic counseling based on industry, media and research, corporate image management, media relations media trainings, press release, press conference, financial public relations, brand support, brand launch, retail support and promotion, events and communications and crisis communications. Chartered flight services, within Sindh or originating from any airfield in Sindh have been proposed to be taxed.