GST in Pakistan 2026-27: Complete Guide
Sales tax in Pakistan is split between the federal government and the provinces. Goods are taxed by the FBR under the Sales Tax Act, 1990. Imports are taxed at the port by Pakistan Customs. Services are taxed by each province: PRA in Punjab, SRB in Sindh, KPRA in Khyber Pakhtunkhwa and BRA in Balochistan. In Islamabad the FBR taxes services under the ICT Ordinance. This calculator covers all three in one place.
The Schedules of the Sales Tax Act, 1990
| Schedule | What it covers | Rate | Input tax |
|---|---|---|---|
| Third | Branded consumer goods taxed on the printed retail price (75 items) | 18% of retail price | Allowed |
| Fifth | Zero-rated: exports, diplomats, EPZ, DTRE, Gwadar, crude oil | 0% | Refundable |
| Sixth | Exempt: basic food, books, medical devices, fertilizers, seeds, POL | No tax | Not allowed |
| Eighth | Reduced rates: pharma 1%, EVs 1%, DAP 5%, laptops 10%, solar 10%, tractors 10% | 1% – 16% | Restricted |
| Ninth | Mobile phones (CBU, CKD, local supply) | 18% / 25% | Restricted |
| Tenth | Fixed tax on bricks and concrete blocks | Rs per month / unit | Not allowed |
| Eleventh | Sales tax withholding by government and companies | 1/5th, 1/10th, whole, 5% | — |
| Twelfth | Value addition tax on commercial imports | 3% | Adjustable |
How Import Duties Are Calculated
- Assessable value = CIF value × exchange rate + 1% landing charges
- Customs Duty (CD), Regulatory Duty (RD) and Additional Customs Duty (ACD) are worked out on the assessable value
- Value for sales tax = assessable value + CD + RD + ACD + FED
- Sales tax 18% and, for commercial importers, 3% value addition tax are charged on that value
- Income tax (Sec 148) is collected on the duty and tax-paid value
Example: Commercial Import of US$10,000
- CIF $10,000 × Rs 281 = Rs 2,810,000 + 1% landing = Rs 2,838,100 assessable value
- CD 20% = Rs 567,620 · ACD 2% = Rs 56,762 · RD 0%
- Value for ST = Rs 3,462,482 → ST 18% = Rs 623,247, VAT 3% = Rs 103,874
- Sec 148 at 6% on Rs 4,189,603 = Rs 251,376
- Total duties and taxes ≈ Rs 1,602,879 (about 57% of the CIF value)
Further Tax and Withholding
When a registered person sells to an unregistered or non-active buyer, an extra 4% further tax is charged under Section 3(1A). Government departments and companies act as withholding agents under the Eleventh Schedule. They deduct 1/5th of the sales tax from active suppliers, the whole tax from non-active suppliers, or 5% of the gross value when a company buys from a non-active person.
Services: Province-wise Rates 2026-27
| Authority | Standard | Telecom | Restaurants (card / cash) | Key reduced rates |
|---|---|---|---|---|
| PRA Punjab | 16% | 19.5% | 8% / 16% | 8% (professional, hotels, marriage halls); 5% (beauty, ITeS); IT development 0% |
| SRB Sindh | 15% | 19.5% | 8% / 15% | 8% legal, tax & beauty; 3% education over Rs 500k fees; 2–3% insurance |
| KPRA KP | 15% | 19.5% | 8% non-corporate (5% with RIMS) | 5% beauty & gyms; 2% ride hailing; 1% dhabas |
| BRA Balochistan | 15% | 19.5% | 15% | Standard rate on most listed services |
| ICT Islamabad | 15% | 19.5% (FED) | 5% / 15% | 5% optional reduced rate without input tax |