Sindh Government reduces sales tax on commissions charged by online platforms for home based vendors

Karachi: In the recently announced provincial budget 2022/2023, the Sindh Government took an important step in supporting home based vendors through allowing a reduction in sales tax on commissions charged for home chefs that operate on online platforms. The rebate is consistent with similar reductions offered by other provinces like Punjab and KP, and is expected to help grow the sector and support grass root economic empowerment (especially for women).

The rebate reduces sales tax from 13% to 8%, allowing for better unit economics and higher potential for growth for such HomeChefs operating on online food delivery platforms, such as foodpanda.

Dr. Wasif  Ali Memon, Chairman SRB, stated, “This step by the Sindh Government will support home-based entrepreneurs working on online delivery platforms and drive economic viability for a large, and growing segment of the society. The rebate will lead to an increase in the number of home based vendors and create an enabling environment which is well aligned with the government’s focus on economic sustainability.”

Muntaqa Peracha, CEO foodpanda, while sharing his thoughts said, “This initiative by the Government of Sindh is in line with our vision of creating a favourable business environment for HomeChefs as they represent an important segment of our portfolio. This move will help grow a new sector that has significant potential for financial and economic inclusion, specifically women’s economic empowerment. We are excited to see its positive impact on food entrepreneurship and aim at scaling it further across the country.”

The reduction in the rate of Sindh sales tax (SST) on commission charged by online food delivery channels from home-based chefs will be applicable from 1st of July, for a  period of two years, ending on June 30, 2024.

HomeChefs are essentially people operating out of their home kitchens who sell food through online platforms. Foodpanda, along with a few other players in the industry, currently has several thousand registered HomeChefs who have been taken on board after stringent routine checks for food hygiene, quality, safety, packaging, etc. The sector is expected to grow significantly, for example foodpanda aims to increase the HomeChefs base in the next two years and take it up to 100,000 registered HomeChefs.

 

foodpanda join hands with USAID SMEA to enhance culinary expertise of its homechefs

Lahore: To further its mission of strengthening the HomeChef ecosystem in Pakistan, foodpanda collaborated with USAID SMEA (Small and Medium Enterprise Activity), to further enhance the culinary expertise and education of its HomeChefs. As part of this collaboration, an extensive three days Culinary and Kitchen Management training was organised at College of Tourism and Hotel Management (COTHM) Lahore. The training consisted of Demonstrations, Practical & Group work and covered key topics like: cooking, baking & desserts, food safety – level 1, menu planning, packaging and temperature management for food delivery, and managing food safety standards.

The session was attended by 22 foodpanda HomeChefs, of which 3 were males and 19 females. The active representation by women is a testament to foodpanda’s vision of creating economic opportunities for women and advancing them by joining hands with strategic partners like USAID SMEA & COTHM.

“This is foodpanda and USAID SMEA’s third successful collaboration. We partnered during the peak of Covid-19 to impart virtual trainings to women across Pakistan on key topics like ’Online Business Management & Marketing’ and ‘Food Handling during Covid-19 Pandemic'”, said Binte Fatima Rizvi, Head of Partnerships for HomeChefs.

“foodpanda’s aim is to increase the HomeChefs base in the next two years and take it up to 100,000 registered HomeChefs. Our partnership with USAID SMEA and COTHM is in-line with this vision and will help us accelerate our efforts, economically empowering people in Pakistan and enhancing food entrepreneurship in the country,” she added.

‘Thank you to foodpanda, USAID & COTHM for providing foodpanda Home Chefs with this excellent learning opportunity. This 3-days extensive training covered all the key topics from cooking to hygiene to running a profitable business. I can’t wait to expand my menu by adding the new dishes i learnt here and give my customers a WOW experience!’ said foodpanda Home Chef Mona Bilal, owner of Hungry Hive.

All participants of the training program were assessed and certified by COTHM. Certificates were distributed to HomeChefs at the end of training completion by Mr. Babar Sheikh, Director HRD & International Development-COTHM and Mr. Ahsan Malik, Head of Home Chefs-foodpanda.

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