Sindh CM, insurance industry discuss tax reforms for next budget

KARACHI, (APP - UrduPoint / Pakistan Point News - 29th May, 2026) Sindh Chief Minister Syed Murad Ali Shah has assured the insurance industry that the Sindh government is committed to a fair and predictable tax regime, as he met a delegation of the Insurance Association of Pakistan (IAP) to review comprehensive budget proposals on Sales Tax on Services (SST) for the Sindh Revenue board (SRB).

The meeting, held at CM House, was attended by IAP Chairman Shoaib Javed, IAP members Javed Hussain and Nadeem Ahmed, Chairman of the Tax Committee IAP, Omer Farooq, Fiscal Advisor Amjad Ashfaq Tola, and other senior industry representatives. Principal Secretary to the CM (PSCM) Agha Wasif, SRB Chairman Wasif Memon and other senior officials assisted the chief minister.

The IAP delegation presented detailed suggestions on the Sindh sales tax on life and health insurance for the provincial budget 2026–27, focusing on encouraging documentation and expanding insurance penetration.

Shah said the province wanted to support growth while safeguarding provincial revenues. “We want a tax regime that is transparent, business-friendly and sustainable,” the chief minister was quoted as saying. “If the insurance sector grows, our people get better protection, and the government benefits from a stronger, documented economy. We will carefully examine your proposals within the framework of the law.”

He also directed the SRB team to continue engaging with the industry. “Constructive input from stakeholders like the IAP will help us shape a more rational tax policy in the upcoming budget.

<?php /*?> <?php */?>

”

IAP Chairman Shoaib Javed welcomed the government’s willingness to consult the industry. “The insurance sector is ready to play its part in revenue generation, but we need clarity and consistency in tax treatment, especially for life and health products that provide essential financial protection,” he said.

He noted that high or inconsistent taxation could discourage individuals and businesses from obtaining coverage. “If we can align the tax regime with international best practices, it will help increase insurance penetration, support long-term savings, and ultimately generate more stable revenues for the province,” Javed added.

The Chairman of the IAP Tax Committee, Omer Farooq, said the association’s proposals aim to simplify compliance. “Our recommendations are designed to minimise ambiguity, lower the cost of doing business and ensure that taxes do not become a barrier to financial inclusion,” he said. “We appreciate the chief minister and SRB for hearing our concerns in detail.”

According to participants, the proposal presented by the IAP was discussed at length, with both sides exchanging views on the legal and fiscal implications of possible changes. It was agreed that another meeting between representatives of SRB and IAP would be held soon to firm up the details and work towards a mutually acceptable framework for the next budget.