Pakistan Sales Tax (GST) CALCULATOR

Enter Amount (PKR):

Select Sales Tax Slab: 0% 5% 12% 18% 25%

Calculated Sales Tax (GST) Amount:

What is Sales Tax (GST) in Pakistan?

The **Sales Tax (GST)** is a value-added tax introduced in Pakistan as part of the country’s efforts to streamline its indirect tax system. It replaced various taxes and duties, including the general sales tax and federal excise duties. It applies to most goods and services provided in Pakistan, with different rates for different categories of goods and services.

The standard **Sales Tax rate** was increased from **17% to 18%** starting **14 February 2023**, as per amendments made by the Pakistani Government. Additionally, a **25% higher rate** of Sales Tax applies to certain luxury goods and locally manufactured vehicles from **8 March 2023**.

Sales Tax Slabs in Pakistan

In Pakistan, goods and services are subject to different **Sales Tax slabs** depending on their category. The key slabs include:

• 0%: Essential items such as **basic food items**, **healthcare**, and **education services** are exempt from Sales Tax to ensure affordability for consumers.
• 5%: Applies to various items such as **processed food**, **fabric**, and **certain daily use goods**.
• 12%: Items like **personal care products**, **some electronics**, and **health and beauty items** fall under this category.
• 18%: Goods such as **common household items**, **appliances**, and **clothing** are taxed at 18%.
• 25%: A special higher rate of 25% is levied on luxury goods such as **aerated drinks**, **cosmetics**, **luxury cars**, and **certain electronics**.

The government has also applied **additional federal excise duties** on items such as **cigarettes**, **aerated beverages**, and **luxury goods** starting from **14 February 2023**.

Key Changes in Sales Tax Rates in Pakistan

As of **8 March 2023**, the following changes to Sales Tax rates have been implemented in Pakistan:

• 25% Tax: Applies to products like **aerated water**, **shampoos**, **cosmetics**, **luxury vehicles**, and **certain appliances**.
• 18% Tax: Standard tax rate applied to goods like **furniture**, **electronics**, and **basic household goods**.
• Special Tax Rates: Some goods, like **mobile phones** and **luxury vehicles**, are taxed at different rates based on value, with a maximum of **25%** tax on certain high-value imports.

Benefits of Sales Tax in Pakistan

The introduction of the Sales Tax has had several positive effects on Pakistan’s economy:

• Economic Transparency: The new tax regime has increased compliance and transparency, as it is linked to the **Federal Tax Authority (FTA)**'s digital systems.
• Reduction in Tax Evasion: The increased digitization of transactions has helped curb tax evasion and improve revenue collection.
• Boosting Local Industries: The revised tax slabs aim to balance the interests of both consumers and producers, promoting local industries while keeping essential goods affordable.
• Improved Interstate Trade: The GST has simplified the movement of goods between provinces, ensuring smooth trade and reducing logistics costs.