Sales Tax Calculator
Punjab Sales Tax on Services
Pakistan, Punjab: telecommunication: 19.5% standard rate: 16% special and reduced rates: 15% 8% 5% 3%
This page covers sales tax on services in Punjab. Pakistan's federal sales tax on goods is a separate tax.
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, Punjab | |
| telecommunication | 19.5% Telecommunication services, including specified telephone, mobile, internet and data services. |
| standard rate | 16% Most taxable services for which no special, reduced or zero rate applies. The standard rate also applies to hotel, motel, guest-house and restaurant services where payment is made other than through a qualifying debit or credit card, mobile wallet or QR payment. |
| special and reduced rates | 15% Carriage of goods by rail or road under the conditions specified in the Punjab Sales Tax on Services Act. 8% Specified concessionary services, generally without input tax adjustment. These include digitally paid hotel and restaurant services, rent-a-car services to end consumers, specified accounting and professional services, catering and event venues, travel and real-estate services, architects, gyms and recreation services, laundries, warehousing, equipment rental and property management. 5% Other qualifying information-technology and IT-enabled services that do not fall under the zero-rated software or IT-based system development category, generally without input tax adjustment. Certain insurance intermediary services also qualify for the 5% rate. 3% Services provided by foreign exchange dealers, exchange companies, money changers and money exchangers in consideration of permitted spread charges on the buying and selling of foreign currency. Input tax adjustment is not allowed. |
Punjab also applies fixed sales-tax amounts to certain services, including specified developers/builders and clearing and forwarding agents. These fixed charges are not percentage-based and cannot be calculated with this calculator.
| Past changes: | |
| 1 Jul 2026 | Concessionary sales-tax rates are revised. Digitally paid hotel, motel, guest-house and restaurant services move from 5% to 8%, while other payment methods remain subject to 16%. Several other services previously taxed at 5% also move to 8%. Foreign exchange services become subject to 3% on permitted spread charges, without input tax adjustment. KPMG, A Brief of Provincial Tax Laws 2026 |
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. Information last checked 6 Oct 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% 8% 6% 5% 4% 3% 2% | |
Articles:
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.