Sales Tax (GST) Calculator

How sales tax works in Pakistan

Pakistan has two kinds of sales tax. Sales tax on goods is a federal tax collected by FBR under the Sales Tax Act 1990, and its standard rate is 18% on most goods. Sales tax on services is collected by the provinces: the Punjab Revenue Authority, Sindh Revenue Board, KP Revenue Authority and Balochistan Revenue Authority. Their standard rates are mostly 15% to 16%, with lower rates for some services such as IT. Some items have reduced rates or are exempt, and rates can change in each year's budget, so check the current rate for your product before you charge it.

Adding tax to a price

If your price is Rs. 10,000 before tax and the rate is 18%, the tax is 10,000 × 18% = Rs. 1,800, and the customer pays Rs. 11,800.

Removing tax from a price that already includes it

If the customer paid Rs. 11,800 including 18% tax, you cannot simply take 18% of 11,800. The correct way is to divide by 1.18: 11,800 ÷ 1.18 = Rs. 10,000 is the price without tax, and Rs. 1,800 is the tax. Use the second option of the calculator for this.

Who has to charge sales tax?

Only businesses registered for sales tax (with an STRN) can charge it on their invoices, and they must deposit it with FBR or the provincial authority and file returns. Small retailers below the registration limits usually do not register. This calculator only does the arithmetic and is not tax advice; for registration and filing, talk to a tax consultant.