The Sindh government has reduced the sales tax on third-party motor insurance from 15 percent to 5 percent, aiming to provide relief to vehicle owners and promote wider insurance coverage across the province.
The decision was approved during a Sindh Cabinet meeting chaired by Chief Minister Syed Murad Ali Shah, where the cabinet was briefed on the matter following consultations with the Insurance Association of Pakistan.
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Alongside the tax cut, the cabinet approved amendments to the Motor Vehicle Ordinance to ensure mandatory enforcement of third-party insurance across Sindh from 2026.
Once enforced, accident victims will have a legal right to claim compensation.
Chief Minister Murad Ali Shah noted that many injured parties currently fail to receive compensation due to weak enforcement.
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He stressed that the government is committed to ensuring timely compensation through stronger legal and administrative measures.
The chief minister also directed the establishment of a 24-hour helpline to assist accident victims and facilitate insurance claims.
To support these reforms, amendments to Sections 19 and 20 of the Motor Vehicle Act were approved and sent to the Sindh Assembly for legislative approval.
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In addition, the cabinet approved changes to the Sindh Government Rules of Business 1986 and redefined the role of the Inter-Provincial Coordination Department to improve administrative efficiency and coordination.
The meeting, attended by provincial ministers, advisors, senior officials, and the chief secretary, approved all agenda items, marking a major step toward improved governance, public welfare, and road safety in Sindh.
