Work out sales tax in either direction: add it to a net figure, or strip it back out of a price that already includes it. Choose the rate that applies to what you are supplying — the federal rate on goods is not the same as the rate your province charges on services — and add further tax if your buyer is not registered.
Rates last verified 26 August 2026. Reduced and sector-specific rates exist for many goods and services, and the provincial authorities set their service rates independently — confirm the rate that applies to your supply before relying on a figure.
General information, not tax advice on your own supplies.
Taking sales tax out is a division, not a subtraction
This is the mistake that costs Pakistani businesses the most money on paper, and it is worth being precise about because it looks harmless.
Say a customer pays you Rs 11,800 and the price included sales tax at 18%. The instinct is to take 18% off Rs 11,800, which gives Rs 9,676. That is wrong. The 18% was charged on the net figure, not on the total, so recovering the net means dividing by 1.18 rather than subtracting from the gross:
- Right: 11,800 ÷ 1.18 = Rs 10,000 net, Rs 1,800 tax.
- Wrong: 11,800 − 18% = Rs 9,676 net, Rs 2,124 tax.
The gap is Rs 324 on a single line of a single invoice. Repeated across a month of sales it becomes a reconciliation that never balances, and if the wrong figure is what goes on your return, it is a figure you cannot support when asked. The calculator above shows you both numbers when you strip tax out, precisely so the difference is visible rather than theoretical.
The higher the rate, the worse the error gets. At 18% you are out by 3.2% of the net. The general form is simple enough to keep in your head: net = gross ÷ (1 + rate).
Goods are federal. Services are provincial.
Pakistan does not have one sales tax. It has a federal tax on goods and a separate provincial tax on services, and they are administered by different authorities with different rates, different returns and different registration.
| What you supply | Who collects it | Standard rate |
|---|---|---|
| Goods | FBR, under the Sales Tax Act 1990 | 18% |
| Services in Sindh | Sindh Revenue Board | 15% |
| Services in Punjab | Punjab Revenue Authority | 16% |
| Services in Khyber Pakhtunkhwa | KP Revenue Authority | 15% |
| Services in Balochistan | Balochistan Revenue Authority | 15% |
| Services in Islamabad | FBR (ICT) | 15% |
The practical consequence is that the same consultancy invoice carries a different rate in Karachi than in Lahore. If you supply services across provinces, you are dealing with more than one authority, and a single blanket rate applied to everything will be wrong somewhere.
Further tax on unregistered buyers
Section 3(1A) of the Sales Tax Act adds 4% further tax when you supply taxable goods to someone who is not registered for sales tax. Two things about it are commonly misunderstood:
- It is a second charge, not a higher rate. An unregistered buyer is charged 18% and then 4%, both on the same taxable value. It is not 22% in one line, and your invoice should show the two separately.
- It is not creditable to the buyer. The standard tax can flow through the chain as input tax; further tax exists specifically to make staying unregistered expensive.
Tick the box in the calculator and it will show the two charges as separate lines, the way they should appear on the invoice.
Common questions
What is the sales tax rate in Pakistan?
The federal standard rate on goods is 18%. Services are taxed by the provinces instead — 15% in Sindh, Khyber Pakhtunkhwa, Balochistan and Islamabad, and 16% in Punjab. Reduced rates apply to a long list of specific goods and services.
How do I remove 18% sales tax from a price?
Divide by 1.18. Do not subtract 18%. On Rs 11,800 including tax, the net is Rs 10,000 and the tax is Rs 1,800; subtracting 18% would wrongly give Rs 9,676.
How do I add sales tax to a price?
Multiply the net figure by the rate. At 18%, Rs 10,000 becomes Rs 1,800 of tax and Rs 11,800 in total.
What is further tax and when does it apply?
It is an extra 4% under section 3(1A), charged on taxable supplies to a buyer who is not registered for sales tax. It is added on top of the standard rate rather than replacing it.
Is GST the same as sales tax in Pakistan?
In everyday use, yes. The law calls it sales tax; “GST” is what most people say and search for. They refer to the same thing.
Other calculators
- Income tax calculator — salary tax across nine tax years.
- Filer status calculator — what non-filer withholding rates cost you.
- Late filing penalty calculator — sections 182 and 182A.
- Budget 2026-27 salary slabs compared — what changed this year.