Sindh Govt Cuts Sales Tax on Vehicle Insurance
Under the chairmanship of Chief Minister Sindh Syed Murad Ali Shah, the Sindh Cabinet approved the implementation of motor third-party insurance.
The cabinet meeting was attended by provincial ministers, advisors, special assistants, Chief Secretary Asif Haider Shah, and relevant secretaries and officials.
The meeting included 12 agenda items, all of which were deliberated and finalized, including approval of the minutes of the previous cabinet meeting.
Regarding excise and taxation, the cabinet discussed motor third-party insurance, and the Chief Minister was briefed on the matter. Following his directives, consultations were held with the Insurance Association of Pakistan (IAP), including two formal meetings.
It was decided that the Motor Vehicle Ordinance will be amended to facilitate the implementation of third-party insurance, which will come into effect from the new year.
Additionally, the sales tax on third-party motor insurance has been reduced from 15% to 5%. The affected parties in accidents will now have a legal right to compensation.
To support this, a 24-hour helpline for insurance claims has been established. Amendments to Sections 19 and 20 of the Motor Vehicle Act were approved and forwarded to the provincial assembly for legislation.
The cabinet also approved amendments to the rules and regulations of the Inter-Provincial Coordination (IPC) Department and updated the Sindh Government Rules of Business 1986. The IPC Department will now serve as an administrative body for CCI and IPCC and act as a provincial policy think tank to strengthen inter-provincial and federal coordination, eliminating dual administrative powers among departments.
Additionally, land was allocated for the establishment of Danish Schools in Karachi and Tando Muhammad Khan, with 12.2 acres earmarked for the Tando Muhammad Khan campus.
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The Sindh Cabinet also approved the Sindh Land Revenue (Amendment) Bill 2025, aimed at digitalizing land records and implementing an e-transfer of title system.
