Sales Tax Calculator Pakistan (2026-27)
Sales tax (GST) in Pakistan is 18% on most goods. Enter a price to add the tax, or enter a price that already includes it to see how much of it is tax.
Sales Tax Act 1990, updated to 30 June 2026Rates for 2026-27
01 The basics
What sales tax is, and who pays it
Sales tax, GST and VAT are one tax
The law calls it sales tax. People say GST. It works as a value added tax: it is charged at every stage of the supply chain, and the consumer bears it in the price.
Output tax minus input tax
A registered business charges output tax on its sales and deducts the input tax it paid on purchases. It pays FBR the difference each month.
Goods are federal, services provincial
FBR collects sales tax on goods and imports across Pakistan. Each province collects its own sales tax on services, and FBR does so in Islamabad.
02 Rates
Sales tax rates in Pakistan for 2026-27
From the Sales Tax Act 1990 as amended up to 30 June 2026.
| What | Rate |
|---|---|
| Standard rateMost goods, and imports (section 3(1)) | 18% |
| Further taxAdded when the buyer is unregistered or inactive (section 3(1A)) | +4% |
| Retail-price goodsThird Schedule: tax is 18% of the printed retail price | 18% |
| Reduced ratesEighth Schedule goods, listed alongside | 1% to 10% |
| Imported mobile phonesNinth Schedule, by value of the set. See the PTA tax calculator | 18% up to $500; 25% above |
| Small retailersCollected through the shop's electricity bill (section 3(9)) | 5% of bills up to Rs 20,000; 7.5% above |
| ExportsZero-rated: no tax, and input tax is refunded (section 4) | 0% |
| Goods | Rate |
|---|---|
| Medicines registered as drugs | 1% |
| Locally made electric vehicles (buses, trucks, rickshaws, motorcycles, small cars) | 1% |
| Locally made jewellery of gold and other precious metal | 3% |
| Second-hand and worn clothing or footwear | 5% |
| DAP fertilizer | 5% |
| Imported laptops, notebooks and personal computers | 10% |
| Tractors | 10% |
| Solar panels (photovoltaic cells) | 10% |
| Pens, pencils, erasers, sharpeners, geometry boxes, colour sets | 10% |
| Poultry feed and cattle feed | 10% |
Eighth Schedule, Table 1. Most carry conditions, such as no adjustment of input tax.
03 Everyday goods
Tax printed on the pack, and goods with no tax
Taxed on the printed retail price
For goods in the Third Schedule the manufacturer or importer pays 18% of the retail price and prints the price and the tax on the pack. The shop adds nothing more.
- Soft drinks, juices, bottled water, syrups
- Tea, coffee, biscuits, ice cream, confectionery
- Soap, detergent, shampoo, toothpaste, cosmetics
- Cigarettes
- Cement, paints, tiles, sanitaryware
- Fans, bulbs, TVs, fridges, air conditioners, washing machines
- Motorcycles, auto rickshaws, tyres, batteries, lubricants
- Packed milk, cooking oil and ghee, pasta, sauces
- Footwear, bags and plastic household goods
Exempt from sales tax
The Sixth Schedule exempts basic food and essentials. Many foods lose the exemption once sold under a brand name or in retail packing.
- Wheat, wheat flour, rice, pulses and other cereals
- Fresh vegetables and fruit
- Uncooked meat, poultry and fish, unless sold under a brand name
- Eggs, and unbranded yogurt, butter, desi ghee and cheese
- Bread, naan and chapatti
- Books, newspapers, magazines and exercise books
- The Holy Quran and other holy books
- Seeds for sowing, pesticides, sugar cane
- Wheelchairs, dialysis equipment and artificial body parts
04 Services
Sales tax on services, by province
Services are taxed where they are provided, under each province's own law. These are the standard rates; restaurants, IT, construction and other listed services often pay less.
| Where | Collected by | Standard rate |
|---|---|---|
| Punjab | Punjab Revenue Authority (PRA) | 16% |
| Sindh | Sindh Revenue Board (SRB) | 15% |
| Khyber Pakhtunkhwa | KP Revenue Authority (KPRA) | 15% |
| Balochistan | Balochistan Revenue Authority (BRA) | 15% |
| Islamabad | Federal Board of Revenue (FBR) | 15% |
In Islamabad, restaurants charge 5% when you pay by card and 15% in cash. The Balochistan rate is from the Act as published by the provincial government.
05 For suppliers
Sales tax withheld by the buyer
Government bodies and companies hold back part of the sales tax on your invoice and pay it to FBR themselves. You claim it as tax already paid in your return.
Check Active Taxpayer status| Buyer | Supplier | Withheld |
|---|---|---|
| Government departments, public bodies and companies | Active taxpayer | One-fifth of the sales tax on the invoice |
| Government departments, public bodies and companies | Active taxpayer registered as wholesaler, dealer or distributor | One-tenth of the sales tax on the invoice |
| Government departments and public bodies | Not an active taxpayer | The whole of the sales tax |
| Companies, firms and individuals | Not an active taxpayer | 5% of the gross value of the supply |
| Registered buyer of advertisement services | Advertiser | The whole of the sales tax |
| Payment gateway or courier, on goods ordered online | Online seller | 2% of the gross value |
Eleventh Schedule. Being on the Active Taxpayer List is what keeps the deduction to one-fifth. Income tax is withheld separately: see withholding tax rates.
What is the sales tax rate in Pakistan?
18% on most goods, under section 3 of the Sales Tax Act 1990. Some goods have reduced rates of 1% to 10%, basic foods and books are exempt, and services are taxed by the provinces at 15% or 16%.
How do I calculate sales tax?
To add tax, multiply the price by 18%: Rs 100,000 carries Rs 18,000 of sales tax, so the buyer pays Rs 118,000. To find the tax inside a price that already includes it, divide by 1.18 first: Rs 118,000 ÷ 1.18 = Rs 100,000, so the tax is Rs 18,000. Taking 18% of the inclusive price gives the wrong answer.
What do GST and VAT mean? Are they different from sales tax?
In Pakistan they are the same tax. The law calls it sales tax; people often say GST (general sales tax). It works like a value added tax (VAT): each registered business charges tax on what it sells and deducts the tax it paid on what it bought, so the tax falls on the value added at each stage and is finally borne by the consumer.
What are input tax and output tax?
Output tax is the sales tax a registered business charges on its sales. Input tax is the sales tax it paid on its purchases and imports. Each month it pays FBR the difference: output tax minus input tax.
What is further tax?
An extra 4% charged on top of the normal rate when goods are sold to a buyer who is not registered for sales tax or is not on the Active Taxpayer List. On a Rs 100,000 sale it adds Rs 4,000, taking the total tax to Rs 22,000. The Government can notify supplies that it does not apply to.
Which goods are exempt from sales tax?
The Sixth Schedule exempts basic items such as wheat, flour, rice, pulses, fresh vegetables and fruit, unbranded meat, fish, eggs and dairy, bread and naan, books and newspapers, and medical items such as wheelchairs and dialysis equipment. Branded or packaged versions of many foods are taxable.
Who has to register for sales tax?
Manufacturers, importers, wholesalers, dealers and distributors, larger (Tier-1) retailers and online sellers. A small "cottage industry" manufacturer with turnover up to Rs 8,000,000 a year, no industrial power or gas connection, premises in a residential area and no more than ten workers does not have to register.
Is sales tax charged on services?
Yes, but by the provinces rather than under the federal Sales Tax Act. The standard rate is 16% in Punjab and 15% in Sindh, Khyber Pakhtunkhwa, Balochistan and Islamabad, with lower rates for some services.
Sources and last update
- Sales Tax Act 1990, as amended up to 30 June 2026 (FBR): sections 2, 3, 4 and 14; Third, Fifth, Sixth, Eighth, Ninth and Eleventh Schedules
- Provincial sales tax on services: Khyber Pakhtunkhwa Sales Tax on Services Act 2022; Balochistan Sales Tax on Services Act 2015; Islamabad Capital Territory (Tax on Services) Ordinance 2001 (to 30 June 2025); KPMG brief of provincial tax laws 2026 for Punjab and Sindh
- Federal Board of Revenue (FBR)
Last reviewed: 7 November 2026. How we calculate
Results are estimates, not tax advice. For your exact tax, check your salary certificate or ask a tax professional.