Sindh Sales Tax on Bike Ride Fares Is 2% of the Net Fare: What Riders Should Know

Short answer: In Sindh, sales tax on passenger rides by two-wheeler drivers who use a ride app is 2 per cent of the net fare, since 25 May 2026. Net fare means the fare minus the app's commission. Delivery and cargo trips on a bike are not covered by the 2 per cent rate.

A bike ride across Karachi costs a few hundred rupees. The tax on it is a few rupees. But thousands of riders and passengers handle those few rupees every day, so the rule matters. We opened the Sindh Revenue Board (SRB) notifications dated 25 May 2026 and read them in full.

This page explains what the notification says, what it leaves out, and how to work out the amount yourself.

Sindh set a 2 per cent rate for bike ride fares

The SRB's Notification No. SRB-3-4/18/2026, dated 25 May 2026, sets sales tax at 2 per cent on passenger ride services by owners or drivers of two-wheeler vehicles who use a cab aggregator. It took effect the same day. The Sindh Government approved it.

A cab aggregator is a company that links riders and drivers through an app. The notification classifies these passenger rides under CPC Code 64115. The rate is lower than the standard Sindh sales tax rate on services, which the SRB gives as 15 per cent.

A second notification, No. SRB-3-4/19/2026, made the matching change in the 2019 special rules for cab aggregators. It added a proviso to rule 3 that points to the 2 per cent rate. Both are dated 25 May 2026 and signed by the SRB Secretary.

How to work out the tax on one ride

Take the fare, subtract the app's commission, and multiply what is left by 0.02. That is the Sindh sales tax on the ride. The commission rate is set by each app, so use the figure on your own earnings statement.

Here is an example. These numbers are ours, not from the SRB. Say a rider charges a Rs 300 fare and the app keeps Rs 60 as commission. The net fare is Rs 240. Two per cent of Rs 240 is Rs 4.80.

1. Write down the fare for the ride.
2. Subtract the app's commission to get the net fare.
3. Multiply the net fare by 0.02.
4. The result is the sales tax on that ride.

The notification does not say what share of the fare a rider keeps. It sets only the tax rate and the base it applies to. Your app's commission is a separate matter between you and the company.

What the 2 per cent rate does not cover

The rate does not apply to delivery, cargo or goods transport by two-wheeler. It covers only trips that carry passengers. It also does not free the app company from its own duties under the 2019 cab aggregator rules.

That second point matters. The SRB's text says the lower rate shall "not absolve the cab aggregator" of its responsibilities and liabilities under the 2019 Rules. So the company still has its own obligations. A rider cannot assume that the app has handled everything, or that no tax exists.

Three things the notifications do not tell us. First, they do not say how the app collects and passes on the tax. Second, they do not say whether an individual rider must register with the SRB. Third, they do not list the rate for car rides. We left those out of this page rather than guess.

The wider Sindh rule applies to services that the Sindh Sales Tax on Services Act, 2011 lists as taxable. An app-based business in Sindh should know its duties, as set out in registering a business with the SRB in Sindh.

What riders and passengers should do now

Riders should keep their app earnings statements and check how the app shows tax. Passengers should read the fare breakdown in the app. If a figure looks wrong, ask the company first, then the SRB. Keep screenshots with dates.

The app market has changed over the past year. Careem leaving Pakistan left riders and passengers with fewer big names, and complaints now go to the companies that remain, as in inDrive and Bykea ride safety and complaints. A tax question follows the same path: app support first, with a written record.

For the tax itself, the SRB's call centre is (+92) 21-99217800, open Monday to Friday, 9 am to 5 pm. The SRB's notifications page lists every Sindh sales tax notification, so you can read the originals yourself.

Common questions

What is the Sindh sales tax rate on bike ride fares?

It is 2 per cent of the net fare. That applies to passenger rides by two-wheeler owners or drivers using a ride app, from 25 May 2026, under SRB notification SRB-3-4/18/2026.

Is the 2 per cent charged on the full fare?

No. It is charged on the net fare, which excludes the app company's commission. On a Rs 300 fare with a Rs 60 commission, the base is Rs 240.

Does the 2 per cent rate cover food delivery on a bike?

No. The notification says the lower rate does not apply to delivery, cargo or goods transport by two-wheelers. It covers passenger rides only.

Is this a Sindh rule or a national rule?

It is a Sindh rule, issued by the Sindh Revenue Board under the Sindh Sales Tax on Services Act, 2011. Other provinces have their own revenue authorities and their own rates. Do not copy this rate elsewhere.

What was the rate before 25 May 2026?

We did not confirm the previous rate for bike rides from the SRB's pages. The standard Sindh rate on services is 15 per cent, but the notification only states the new 2 per cent rate, so we do not claim a before figure.

How we verified this

What we checked, where we read it, and what we could not confirm.

Last checked on Sunday 11 October 2026 at about 4 am PKT. We read SRB Notification No. SRB-3-4/18/2026 and No. SRB-3-4/19/2026, both dated 25 May 2026, on the SRB's notifications page. The standard 15 per cent rate on services is from the SRB's taxable services page. We did not read the full 2019 cab aggregator rules, so we do not describe how tax is collected from riders. The Rs 300 fare and Rs 60 commission are our own example numbers.