Provincial Sales Tax on Services: a Simple Guide
Since the 18th Amendment, sales tax on services is a provincial subject. If you provide a taxable service, such as consultancy, IT-enabled services, advertising, restaurants, beauty parlours, construction, courier or telecom, you charge tax at the rate of the province where the service is provided and pay it to that province's revenue authority. This tax calculator covers every authority in one place.
PRA Tax: Punjab Revenue Authority
Punjab charges 16% on services, the highest standard rate in Pakistan. Telecom is 19.5%, restaurants paid by card or QR are 8%, IT-enabled services are 5% and software development is zero-rated. Use our detailed PRA tax calculator for fixed-rate services such as construction (Rs. 100 per sq. yard / Rs. 50 per sq. ft) and freight forwarding.
SRB: Sindh Revenue Board
Sindh charges 15% standard and 19.5% on telecom. Under Finance Act 2026 several services have reduced rates, for example legal and tax consultancy, repair and beauty services at 8%, educational support at 5%, brokerage at 3% and insurance agents at 2%.
KPRA: Khyber Pakhtunkhwa Revenue Authority (KPK)
The KP Revenue Authority (often searched as KPK revenue authority or KPKRA) charges 15% standard and 19.5% on telecom, with reduced rates such as 10% for caterers, 8% for marriage halls, 5% for beauty parlours, gyms and clinics, and 2% for ride-hailing services.
BRA: Balochistan Revenue Authority
Balochistan charges 15% on most services listed in its Second Schedule, and 19.5% on telecom.
Islamabad: is there an "Islamabad Revenue Authority"?
No. There is no separate Islamabad Revenue Authority. Sales tax on services in the Islamabad Capital Territory is collected by the Federal Board of Revenue (FBR) under the ICT (Tax on Services) Ordinance, 2001, and returns are filed on FBR's IRIS portal. The standard rate is 15%. Certain services can opt for a 5% reduced rate without input tax, and export of services is zero-rated.
AJK: Sales Tax on Services in Azad Kashmir
Azad Jammu & Kashmir has its own Inland Revenue Department (Central Board of Revenue AJK). The standard rate is reported at 16%, with 19.5% on telecom and 5% for certain services. Our office in Hajira, AJK helps businesses in Hajira, Rawalakot, Poonch, Muzaffarabad, Mirpur and Kotli with AJK registration and returns.
How the calculation works
- Amount excluding tax: Tax = Amount × Rate. Total = Amount + Tax.
- Amount including tax: Value = Amount ÷ (1 + Rate). Tax = Amount − Value.
Example: a Rs. 100,000 consultancy bill in Lahore carries 16% PRA tax = Rs. 16,000 (total Rs. 116,000). The same bill in Karachi, Peshawar, Quetta or Islamabad carries 15% = Rs. 15,000.
Which authority should I register with?
Generally you register with the authority of the province where you provide the service and have your business. If you serve clients in more than one province, you may need more than one registration. Tax on goods is separate and goes to FBR; see our GST calculator.
Book a free consultation and Chinnar Business Advisors will handle your PRA, SRB, KPRA, BRA, FBR (ICT) or AJK registration and monthly returns.
Disclaimer
This calculator is for guidance only. Rates depend on the exact service and the latest notifications. Consult a tax professional before filing.
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