Sindh Revenue Board cracks down on tax evasion in cosmetic & dental surgery sector

KARACHI: To curb tax evasion and enforce compliance under the Sindh Sales Tax on Services Act, 2011, the Sindh Revenue Board (SRB) has launched a crackdown on cosmetic and plastic surgery providers, including dental and aesthetic surgery clinics operating across the province.

In a strongly worded notice dated April 10, 2025, the SRB highlighted widespread violations and non-compliance among service providers falling under Tariff Heading 9842.0000, which covers “Cosmetic and Plastic Surgery and Transplantations”. One such notice, sent to a dental practice, a copy of which is available with Dental News, confirms the tax authority’s intensified scrutiny of the sector.

Key issues highlighted by SRB:

• Suppression of taxable services
• Non-issuance of proper tax invoices
• Evasion of due Sindh sales tax
• Failure to e-file accurate tax returns

The notice further indicates that multiple businesses in this category — not just a single entity — are under scrutiny. Clinics providing cosmetic dental procedures such as smile makeovers, veneers, dental implants, and facial aesthetic surgeries fall within this taxable bracket and are thus liable to pay the applicable Sindh sales tax.

“Despite offering significant volumes of taxable services, many practitioners have failed to meet their tax obligations under the Act,” the SRB statement reads.

The board has warned of strict enforcement actions, including:

• Deployment of SRB officials at non-compliant business premises
• Seizure and inspection of business records
• Sealing of premises found violating tax laws

The SRB has already started sealing clinics and practices found non-compliant with the law.

Tax experts suggest that this move will have wide-ranging implications for aesthetic service providers, particularly in the dental implantology and cosmetic dentistry segment, which has seen exponential growth in recent years.

The SRB has urged all practitioners to:

• Issue proper invoices
• File accurate tax returns
• Ensure timely payment of due tax

Failure to do so could invite penal actions, causing serious disruption to regular operations.

This is a developing story, and we will continue to keep our readers updated as new developments emerge and key stakeholders respond to the Sindh Revenue Board’s enforcement drive. Stay tuned for further updates and expert insights.