KARACHI: The Sindh Cabinet has approved major tax relief for bike taxi riders, aiming to support low-income earners and ease financial pressure on those working in the ride-hailing sector.
The decision was taken in a meeting chaired by Chief Minister Murad Ali Shah at the CM House in Karachi, where development, welfare, and reform projects worth over Rs30 billion were also cleared.
Under the new relief package, the Sindh Sales Tax on motorcycle-based passenger services has been reduced from 5% to 2% on net fares earned by riders working with platforms such as Bykea. Officials said the move is designed to prevent ride cancellations and protect the earnings of riders who depend on daily income.
The government estimates the tax reduction will have an annual financial impact of around Rs120 million, but says the relief is necessary to support a growing segment of urban transport workers and improve service stability.
Officials added that the cabinet meeting also reviewed broader initiatives in infrastructure, healthcare, education, and governance reforms aimed at improving public services across Sindh.
