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Pakistan: higher rate: 25% standard rate: 18% special and reduced rates: 16% 12.5% 12% 10% 5% 3% 1%
The rates shown in the calculator primarily concern Pakistan's federal sales tax on goods. Sales tax on services is administered separately by the provinces and Islamabad Capital Territory.
See: Punjab, Sindh, Khyber Pakhtunkhwa, Balochistan and Islamabad Capital Territory.
Advanced mode: You will see the effect of rounding on the VAT amount to be paid. See how the calculation is done.
See also: Percentage calculator
Tax calculator needs two values. You can e.g. fill in tax % and price - and get price before tax as result. Price before tax and price are rounded.
You can also choose the tax % by clicking the percentage in the table below.
Pakistan | |
| higher rate | 25% Selected goods subject to a special higher rate, including specified luxury goods and vehicles under SRO 297(I)/2023 as amended. Imported mobile phones with a value exceeding USD 500 are also subject to 25%. From 13 September 2026, locally manufactured hybrid electric vehicles with engine capacity up to 2,000 cc are excluded from this special rate and are taxed at 18%. The exclusion applies only to hybrid electric vehicles. Plug-in hybrid electric vehicles are not mentioned in the notification and therefore remain subject to the 25 % rate. |
| standard rate | 18% Most taxable goods manufactured in Pakistan or imported into Pakistan unless they are zero-rated, exempt or subject to a special rate. From 13 September 2026, qualifying locally manufactured hybrid electric vehicles with engine capacity up to 2,000 cc are also subject to the standard 18% rate instead of the special 25% rate. |
| special and reduced rates | 16% Goods supplied from the tax-exempt areas of the former FATA/PATA to taxable areas are subject to 16% under the Eighth Schedule. This is a specific territorial regime, not a general reduced rate. 12.5% Specified electric vehicles imported in CBU condition with a battery capacity of 50 kWh or below. 12% For the 2026/27 tax year, specified imports, industrial inputs and supplies qualifying under the transitional regime for industrial units in the former FATA/PATA areas. The rate is scheduled to rise to 14% in 2027/28 and 16% in 2028/29. 10% Specified goods under the Eighth Schedule, including imported personal and laptop computers, certain stationery products, tractors, specified animal feed and seed meals, certain food products and photovoltaic cells and solar panels. The exact treatment depends on the tariff heading and statutory conditions. 5% Diammonium phosphate (DAP) fertiliser under the conditions of the Eighth Schedule. 3% Locally manufactured articles of jewellery, or parts thereof, of precious metal or metal clad with precious metal. Input tax adjustment is not allowed under this special regime. 1% Specified electric vehicles and pharmaceutical inputs under the conditions of the Eighth Schedule. This includes qualifying locally manufactured electric vehicles and specified drugs and pharmaceutical raw materials. Some electric-vehicle concessions are temporary. |
| zero rate | 0% Exports of goods and goods specifically listed in the Fifth Schedule are zero-rated. Zero rating also applies to stores and provisions for consumption aboard qualifying international conveyances and to certain other supplies expressly authorised by law. The Fifth Schedule includes, subject to statutory conditions, specified supplies to diplomats and privileged organisations, supplies of inputs for manufacture in Export Processing Zones, supplies to exporters under the Duty and Tax Remission Rules and qualifying supplies to the Gwadar Special Economic Zone. Input sales tax relating to zero-rated supplies may generally be recovered or refunded. |
| exempt without deduction | The Sixth Schedule contains goods exempt from federal sales tax. These include, subject to detailed tariff classifications and conditions, specified agricultural produce and inputs, certain food and medical products, supplies by qualifying cottage industries, educational and printed material and numerous sector-specific goods and imports. From 1 July 2026, magazines and female sanitary pads and tampons are among the exempt goods. Input tax relating exclusively to exempt supplies is generally not recoverable. |
| out of scope | Pakistan's federal Sales Tax Act primarily taxes goods and imports. Most services are outside this federal goods-tax regime and are instead subject to separate sales taxes administered by the provinces, Islamabad Capital Territory or other relevant jurisdictions. Money, stocks, shares, securities and actionable claims are not treated as goods for federal sales tax purposes. |
| sales tax registration | Federal sales tax registration is based on the type and scale of the business rather than a single universal turnover threshold. Importers, wholesalers, distributors and specified retailers must register. A manufacturer qualifies as a cottage industry only if all statutory conditions are met, including annual turnover not exceeding PKR 8 million, no industrial gas or electricity connection, operation from a residential area and no more than ten workers. Finance Act 2026 also revised the Tier-1 retailer rules, including a PKR 200 million turnover test for specified retailers and wholesaler-cum-retailers. Persons making digitally ordered taxable supplies through online marketplaces are subject to separate registration rules. |
| Upcoming changes: | |
| 1 Jul 2027 | Under current legislation, the transitional sales tax rate for qualifying industrial activity in the former FATA/PATA areas rises from 12% to 14%. The temporary 1% treatment for certain qualifying electric vehicles is also scheduled to expire after 30 June 2027. Federal Board of Revenue – Sales Tax Act 1990 |
| 1 Jul 2028 | Under current legislation, the transitional sales tax rate for qualifying industrial activity in the former FATA/PATA areas rises from 14% to 16%. Federal Board of Revenue – Sales Tax Act 1990 |
| Past changes: | |
| 13 Sep 2026 | Qualifying locally manufactured hybrid electric vehicles with engine capacity up to 2,000 cc are removed from the special 25% sales tax regime and become subject to the standard 18% rate. Federal Board of Revenue – SRO 1525(I)/2026 (PDF) |
| 1 Jul 2026 | The concessional sales tax rates of 8.5% and 12.75% for locally manufactured hybrid electric vehicles are no longer in force. Hybrids within the vehicle categories of Table II of SRO 297(I)/2023 become subject to the 25% rate. Federal Board of Revenue – Sales Tax Act 1990, Eighth Schedule, amended through Finance Act 2026 |
| 1 Jul 2026 | The transitional sales tax rate for qualifying industrial activity in the former FATA/PATA areas increases from 10% to 12%. Magazines and female sanitary pads and tampons become sales-tax exempt. The temporary 1% rate for specified qualifying electric vehicles is extended through 30 June 2027. Federal Board of Revenue – Sales Tax Act 1990, amended through Finance Act 2026 |
| 1 Jul 2025 | The sales-tax exemption for photovoltaic cells and solar panels is withdrawn and they become subject to 10%. A phased withdrawal of the sales-tax exemption for qualifying industrial activity in the former FATA/PATA areas begins at 10% for 2025/26. Federal Board of Revenue – Finance Act 2025 explanatory circular |
| 1 Jul 2024 | Several reduced and exempt regimes are revised. Imported laptop and personal computers move from 5% to 10%. Specified stationery, tractors, animal feed and seed meals and certain food products move from exemption to 10%. Most mobile phones move to the standard 18% regime, while imported mobile phones valued above USD 500 remain subject to 25%. Federal Board of Revenue – Finance Act 2024 explanatory circular |
| 8 Mar 2023 | A special 25% sales tax rate is introduced for specified luxury and high-value goods, including designated imported goods and vehicles. Federal Board of Revenue – SRO 297(I)/2023 |
| 14 Feb 2023 | The standard federal sales tax rate on goods increases from 17% to 18%. Federal Board of Revenue – Finance (Supplementary) Act 2023 |
Note! The VAT information on this page is general information, not tax advice. The information is not exhaustive. VAT rules include many exceptions and special cases. Check the treatment of your situation in the tax administration's guidelines. The information was checked on 22 Sep 2026.
Pakistan, Balochistan | ||
| higher rate | 19.5% | |
| standard rate | 15% | |
| special and reduced rates | 10% 8% 6% 5% 4% 3% 2% 1% | |
Pakistan, Islamabad Capital Territory | ||
| standard rate | 15% | |
| reduced rate | 5% | |
https://www.fbr.gov.pk/Categ/The-Islamabad-Capital-Territory-Tax-on-Services-Ordinance-2001/771
Pakistan, Khyber Pakhtunkhwa | ||
| telecommunication | 19.5% | |
| standard rate | 15% | |
| special and reduced rates | 10% 6% 5% 4% 3% 2% 1% | |
Pakistan, Punjab | ||
| telecommunication | 19.5% | |
| standard rate | 16% | |
| special and reduced rates | 15% 8% 5% 3% | |
VAT rounding: the EU, the UK and other European countries
The EU VAT Directive and the Court of Justice of the European Union leave VAT rounding rules to be decided at national level. National rules vary. In the UK, HMRC allows VAT on B2B invoices to be rounded down to the nearest whole penny.
Roundings in VAT calculation: Mathematically impossible prices?
There are a whole range of VAT-inclusive prices that cannot be mathematically arrived at if the tax is calculated from the VAT-free price. One example is 3.99. These prices are also possible, but then the VAT-free price must be interpreted as rounded.
VAT Gap - How much VAT is left uncollected in EU countries?
9.5% of VAT was left uncollected in EU countries. See the list of EU countries and candidate countries.
In Europe there is VAT - in the US sales tax
In Europe, companies belonging to the production chain account for the VAT paid by the consumer to the state in proportion to their value added. The US sales tax, on the other hand, is billed entirely by the company that made the consumer sale. Sales tax is paid to local operators, not to the state.
Many of today's taxes were already in use in Antiquity. Deciding on taxation has moved from autocrats to parliaments and the level of taxation has risen. In earlier times taxes were used to wage wars, today taxes are used to maintain welfare states.
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