Sales tax on goods in Pakistan is 18% for 2026-27. To add it, multiply the price by 0.18: Rs 10,000 plus 18% is Rs 11,800. To take it out of a total, divide by 1.18: Rs 11,800 includes Rs 1,800 of tax.
Services are taxed by the provinces and Islamabad at their own rates, from 15% to 16%, with 19.5% on telecom. Choose the rate that fits your bill in the calculator.
How to calculate sales tax in Pakistan
Adding GST to a price
Sales tax = price × rate ÷ 100. Total = price + sales tax.
A supplier sells goods worth Rs 25,000 before tax. Tax at 18% is 25,000 × 18 ÷ 100 = Rs 4,500, so the invoice total is Rs 29,500.
Reverse calculation: taking GST out of a total
This is the one people get wrong. You cannot take 18% of the total, because the total already has tax inside it. Use:
Price before tax = total ÷ (1 + rate). Sales tax = total − price before tax.
For a bill of Rs 1,000 including 18% tax: 1,000 ÷ 1.18 = Rs 847.46 before tax, so the tax is Rs 152.54. Taking 18% of Rs 1,000 would give Rs 180, which is too high.
A quick way: the tax inside a total at 18% is always 18 ÷ 118 of it, about 15.25%. At 16% it is 16 ÷ 116, and at 15% it is 15 ÷ 115.
Sales tax rates in Pakistan for 2026-27
Goods are taxed by the FBR under the Sales Tax Act 1990. Services are taxed where they are provided, by each province and by Islamabad.
| Supply | Rate | Law |
|---|---|---|
| Goods, standard rate (FBR) | 18% | Sales Tax Act 1990, section 3(1) |
| Goods sold to an unregistered buyer (18% + 4%) | 22% | Sales Tax Act 1990, section 3(1) and 3(1A) |
| Services in Punjab (PRA) | 16% | Punjab Sales Tax on Services Act 2012 |
| Services in Sindh (SRB) | 15% | Sindh Sales Tax on Services Act 2011 |
| Services in Khyber Pakhtunkhwa (KPRA) | 15% | KP Sales Tax on Services Act 2022, section 9(1) |
| Services in Balochistan (BRA) | 15% | Balochistan Sales Tax on Services Act 2015 |
| Services in Islamabad (ICT) | 15% | ICT (Tax on Services) Ordinance 2001 |
| Telecom services (all provinces) | 19.5% | Provincial services laws; Federal Excise Act 2005 in Islamabad |
Some services have reduced rates in each province. Islamabad restaurants, for example, charge 5% when you pay by card, mobile wallet or QR code and 15% in cash. Pick "Other rate" in the calculator for any rate not listed.
Further tax, retail price and reduced rates
4% further tax on unregistered buyers
When a registered business sells taxable goods to a buyer who is not registered, section 3(1A) adds a further 4% on top of the 18%. On goods worth Rs 10,000 that is Rs 1,800 plus Rs 400, so Rs 2,200 in all. Choose "Goods sold to an unregistered buyer" to see both parts.
Goods taxed on the printed retail price
Items in the Third Schedule, such as many packaged foods, drinks and cosmetics, are taxed at 18% of the printed retail price, not the factory price. The price on the pack already includes the tax. Budget 2026-27 added more items to this list, including edible oils, confectionery, sauces, footwear and household utensils.
Reduced rates
The Eighth Schedule sets lower rates for specific goods. One example: locally made electric vehicles are taxed at 1%, and Finance Act 2026 extended this to 30 June 2027. Check the schedule for your item, then enter its rate as "Other rate".
18% GST on common amounts
Left: tax added to a price. Right: tax already inside the same amount.
| Amount | Tax added (18%) | Price with tax | Tax inside if amount includes tax | Price before tax |
|---|---|---|---|---|
| Rs 100 | Rs 18.00 | Rs 118.00 | Rs 15.25 | Rs 84.75 |
| Rs 500 | Rs 90.00 | Rs 590.00 | Rs 76.27 | Rs 423.73 |
| Rs 1,000 | Rs 180.00 | Rs 1,180.00 | Rs 152.54 | Rs 847.46 |
| Rs 5,000 | Rs 900.00 | Rs 5,900.00 | Rs 762.71 | Rs 4,237.29 |
| Rs 10,000 | Rs 1,800.00 | Rs 11,800.00 | Rs 1,525.42 | Rs 8,474.58 |
| Rs 50,000 | Rs 9,000.00 | Rs 59,000.00 | Rs 7,627.12 | Rs 42,372.88 |
| Rs 100,000 | Rs 18,000.00 | Rs 118,000.00 | Rs 15,254.24 | Rs 84,745.76 |
Sales tax questions
What is the sales tax rate in Pakistan for 2026-27?
18% on goods, under section 3 of the Sales Tax Act 1990, unchanged by Finance Act 2026. Services are taxed by the provinces and Islamabad: 16% in Punjab, 15% in Sindh, Khyber Pakhtunkhwa, Balochistan and Islamabad, and 19.5% on telecom services everywhere except Gilgit-Baltistan.
How do I calculate 18% GST from a total amount?
Divide the total by 1.18 to get the price before tax, then subtract that from the total. For Rs 5,900 the price before tax is Rs 5,000 and the tax is Rs 900. Multiplying the total by 18% overstates the tax, because the total already includes it.
What is the difference between GST and sales tax in Pakistan?
They are the same tax. The law calls it sales tax, and people often say GST, short for general sales tax. On goods it is collected by the FBR. On services each province collects its own sales tax, so a restaurant bill in Karachi and one in Lahore can carry different rates.
Is sales tax on services the same in every province?
No. Each province sets its own rate under its own law. For 2026-27 the standard rate is 16% in Punjab and 15% in Sindh, Khyber Pakhtunkhwa, Balochistan and Islamabad. Many services have lower rates, often without input tax credit, so the rate on your bill can be lower than the standard one.
How much tax is on mobile load?
Mobile balance carries 15% advance income tax when you load and 19.5% sales tax when you use it. From Rs 100 you get Rs 86.96 of balance. The mobile load tax calculator shows the full split for any amount.
This calculator is for working out figures on quotes, invoices and bills. Registered businesses file returns on output tax minus input tax, which this tool does not do. Provincial rates are set by each province's own finance act, so check your invoice or the revenue authority's schedule for special cases.
Last reviewed 29 September 2026. Results are estimates; official notices always take precedence.