Services in Pakistan are taxed by the provinces, not the FBR. The standard rate for 2026-27 is 16% in Punjab (PRA) and 15% in Sindh (SRB), Khyber Pakhtunkhwa (KPRA), Balochistan (BRA) and Islamabad. Telecom is 19.5% everywhere, and restaurants charge less when you pay by card or QR code.
Pick the province and service, enter the amount and say whether it already includes tax. The calculator splits the invoice into the value of the service, the tax and the total.
Standard sales tax rates on services 2026-27
Rates in force from 1 July 2026 under each province's sales tax on services law and the provincial Finance Acts 2026.
| Province or territory | Collected by | Standard rate | Telecom |
|---|---|---|---|
| Punjab | Punjab Revenue Authority (PRA) | 16% | 19.5% |
| Sindh | Sindh Revenue Board (SRB) | 15% | 19.5% |
| Khyber Pakhtunkhwa | Khyber Pakhtunkhwa Revenue Authority (KPRA) | 15% | 19.5% |
| Balochistan | Balochistan Revenue Authority (BRA) | 15% | 19.5% |
| Islamabad | FBR (Islamabad Capital Territory) | 15% | 19.5% |
Goods are different. Sales tax on goods is federal, at 18% under the Sales Tax Act 1990; use the sales tax calculator for goods.
How to work out sales tax on a service
Price before tax
Multiply the value of the service by the rate and add it on.
- Lahore restaurant bill of Rs 5,000 paid by card: 5,000 × 8% = Rs 400, total Rs 5,400
- The same bill paid in cash: 5,000 × 16% = Rs 800, total Rs 5,800
Paying by card, mobile wallet or QR code saves Rs 400 on this bill.
Price that already includes tax
Divide by 1 plus the rate to get the value, then subtract.
- Karachi consultancy invoice of Rs 115,000 including SRB tax at 15%
- Value: 115,000 ÷ 1.15 = Rs 100,000
- Sindh sales tax: 115,000 − 100,000 = Rs 15,000
A common mistake is to take 15% of Rs 115,000 (Rs 17,250). That overstates the tax, because the 15% is charged on the value before tax, not on the total.
PRA tax rates in Punjab
Punjab Sales Tax on Services Act 2012, with the changes made by the Punjab Finance Act 2026.
| Punjab service | Rate |
|---|---|
| Standard rate (services not listed below) | 16% |
| Restaurant, paid by card, mobile wallet or QR code (no input tax adjustment) | 8% |
| Restaurant, paid in cash or any other way | 16% |
| Telecommunication services | 19.5% |
| IT and IT-enabled services (reduced rate entry) (no input tax adjustment) | 8% |
| Accountancy, audit, tax or corporate law consultancy (no input tax adjustment) | 8% |
| Event management (no input tax adjustment) | 8% |
| Foreign exchange dealing services (no input tax adjustment) | 3% |
The Punjab budget for 2026-27 raised the reduced rate for IT-related, transport and professional services from 5% to 8%, raised the restaurant rate for card, wallet and QR payments from 5% to 8% (16% still applies to other payments), and cut the input tax a registered person can claim to 80% of output tax.
SRB tax rates in Sindh
Sindh Sales Tax on Services Act 2011, as amended by the Sindh Finance Act 2026.
| Sindh service | Rate |
|---|---|
| Standard rate (services not listed below) | 15% |
| Restaurant, paid through digital means | 8% |
| Restaurant, paid in cash | 15% |
| Telecommunication services | 19.5% |
| Construction services | 15% |
| Accounting, auditing and bookkeeping | 15% |
| Insurance agents | 2% |
| Insurance brokers | 3% |
| Education, fee above Rs 500,000 a year per student | 3% |
From 1 July 2026 construction services and accounting, auditing and bookkeeping firms in Sindh charge the full 15%. The earlier 8% options for them were withdrawn.
KPRA tax rates in Khyber Pakhtunkhwa
Khyber Pakhtunkhwa Sales Tax on Services Act 2022, with the rate changes of the Khyber Pakhtunkhwa Finance Act 2026.
| Khyber Pakhtunkhwa service | Rate |
|---|---|
| Standard rate (services not listed below) | 15% |
| Telecommunication services | 19.5% |
| Construction on ADP funded projects approved on or after 1 July 2025 (no input tax adjustment) | 4% |
| Construction on ADP projects approved 1 July 2021 to 30 June 2025 | 2% |
| Virtual asset trading and exchange services (no input tax adjustment) | 5% |
BRA tax rates in Balochistan
Balochistan Sales Tax on Services Act 2015, with the rate changes of the Balochistan Finance Act 2026.
| Balochistan service | Rate |
|---|---|
| Standard rate (services not listed below) | 15% |
| Restaurant issuing invoices through a POS machine | 4% |
| Telecommunication services | 19.5% |
| Technical and engineering consultants | 8% |
| Commission agents | 8% |
| Hospital services (no input tax adjustment) | 3% |
Islamabad rates
Islamabad Capital Territory (Tax on Services) Ordinance 2001, collected by the FBR. Telecom in Islamabad carries federal excise duty at the same 19.5%.
| Islamabad service | Rate |
|---|---|
| Standard rate (services not listed below) | 15% |
| Restaurant, paid by card, mobile wallet or QR code | 5% |
| Restaurant, paid in cash | 15% |
| Telecommunication services (federal excise duty) | 19.5% |
The same Rs 100,000 service in each province
Standard rate only.
| Where provided | Standard rate | Tax on Rs 100,000 | Invoice total |
|---|---|---|---|
| Punjab | 16% | Rs 16,000 | Rs 116,000 |
| Sindh | 15% | Rs 15,000 | Rs 115,000 |
| Khyber Pakhtunkhwa | 15% | Rs 15,000 | Rs 115,000 |
| Balochistan | 15% | Rs 15,000 | Rs 115,000 |
| Islamabad | 15% | Rs 15,000 | Rs 115,000 |
Reduced rates and input tax
Most reduced rates come with a condition: no input tax adjustment. A registered provider charging 8% in Punjab cannot deduct the sales tax it paid on its own purchases, while one charging 16% can. For a customer the rate on the invoice is what matters; for the provider the choice changes the tax actually paid.
If your service is not listed here, the standard rate applies unless your province's schedule gives it a different rate or an exemption. Enter any other rate in the "Other rate" box. Check the rate on your registration certificate or the invoice from a registered provider, which must show the tax separately.
Questions people ask
What is the Sindh sales tax rate on services in 2026-27?
15% for most services, collected by the Sindh Revenue Board. Telecom is 19.5%. Restaurants charge 8% when paid through digital means and 15% in cash. Insurance agents pay 2%, brokers 3%, and schools with fees above Rs 500,000 a year per student 3%.
What is the PRA tax rate in Punjab?
The standard rate is 16%. From 1 July 2026 restaurants charge 8% on card, wallet or QR payments and 16% otherwise. IT-related, professional and accountancy services under the reduced rate entries pay 8% without input tax adjustment, foreign exchange dealers 3%, and telecom 19.5%.
What is the SRB tax on a restaurant bill?
In Sindh a restaurant bill paid through a card, wallet or other digital means carries 8% sales tax. Paid in cash it carries 15%. On a Rs 4,000 meal that is Rs 320 against Rs 600.
How do I remove sales tax from a total?
Divide the total by 1 plus the rate. For 16%, divide by 1.16; for 15%, by 1.15. The result is the value of the service, and the difference is the tax. Rs 58,000 including 16% PRA tax is Rs 50,000 plus Rs 8,000 tax.
Is sales tax on services the same as GST?
People call both GST, but they are different taxes. Sales tax on goods is federal at 18% under the Sales Tax Act 1990. Sales tax on services is provincial, at 15% or 16% standard, and goes to the PRA, SRB, KPRA, BRA or, in Islamabad, the FBR.
Last reviewed 30 September 2026. Results are estimates; official notices always take precedence.