Skip to main content
logoFinsiva
Pakistan Sales Tax & GST Guide (2026): 18% FBR Rate & Exemptions

Pakistan Sales Tax & GST Guide (2026): 18% FBR Rate & Exemptions

By Farhan AhmedLast updated: August 202615 min read
Statutory source alignment verified for August 2026 by Farhan Ahmed (Statutory Research)

Understanding pakistan sales tax, statutory gst rate in pakistan, and provincial services tax is essential for businesses, importers, retailers, and consumers.

In Pakistan, indirect taxation is bifurcated: federal sales tax on goods is governed by the Federal Board of Revenue (FBR) under the Sales Tax Act, 1990, while sales tax on services is collected by provincial revenue authorities.

1. Federal Sales Tax Rates on Goods (18% GST)

The standard current sales tax rate in pakistan on taxable goods is 18% (adjusted from the historical 17 percent gst in pakistan).

CategoryFBR Federal Sales Tax Rate
Standard Taxable Goods & Imports18% Standard GST
Supplies to Unregistered Persons (Further Tax)18% GST + 4% Further Tax = 22%
Laptops & Personal Computers18% Sales Tax (or Eighth Schedule reduced rate)
Exempt Goods (Sixth Schedule)0% (Fully Exempt)
Interactive Calculator

Pakistan 18% Sales Tax & GST Calculator

Full Tool →

Calculate 18% Federal Sales Tax on goods. Choose whether to add tax to a net amount (tax exclusive) or extract tax from a gross total (tax inclusive).

Enter your details above and click Calculate.

Your estimated tax results will appear here.

Calculate tax-inclusive prices using our Pakistan GST Calculator.

2. Provincial Sales Tax on Services Rates

Under the 18th Constitutional Amendment, sales tax on services is administered by provincial revenue authorities:

  • Sindh Sales Tax on Services (SRB): Standard rate is 13% (with specific services taxed up to 15%).
  • Punjab Sales Tax on Services (PRA): Standard rate is 16% across commercial and IT services.
  • Islamabad Capital Territory GST on Services (ICT): Standard rate is 15% administered by FBR.
  • Khyber Pakhtunkhwa Sales Tax on Services (KPRA): Standard rate ranges from 15% to 16%.

3. List of Exempt Goods (Sixth Schedule)

The Sixth Schedule of the Sales Tax Act 1990 provides a statutory list of goods exempted from sales tax in pakistan:

  1. Unprocessed agricultural produce (wheat, rice, fresh fruits, un-bolled cotton).
  2. Basic food staples (fresh milk, pulses, fresh vegetables, meat).
  3. Educational textbooks, printed newspapers, and holy books.
  4. Life-saving pharmaceutical medicines and vaccines.

4. Tier-1 Retailers & STRN Mandatory Registration

Sales Tax Registration Number (STRN) is mandatory for importers, wholesalers, distributors, manufacturers, and Tier-1 retailers (retail outlets located in air-conditioned shopping malls or with electricity bills exceeding PKR 1.2 million per year). Tier-1 retailers must integrate POS systems directly with FBR's real-time portal.

Explore all utilities on our Pakistan Tax Calculators Directory or review our Pakistan Income Tax Knowledge Hub.

Frequently Asked Questions

What is the standard federal sales tax (GST) rate in Pakistan for 2026?

The standard federal sales tax rate in Pakistan is 18% on the supply and import of taxable goods under the Sales Tax Act 1990 (increased from 17% in previous budget amendments).

What is the sales tax rate on laptops and computer software in Pakistan?

Laptops and personal computers imported or sold locally are subject to federal sales tax rates, while IT software exports remain zero-rated. Domestic software sales incur provincial sales tax.

What is Further Tax on supplies to unregistered persons in Pakistan?

Under Section 3(1A) of the Sales Tax Act 1990, registered manufacturers and distributors must charge an additional Further Tax (typically 4%) on taxable supplies made to unregistered persons.

What goods are exempt from sales tax under the Sixth Schedule?

The Sixth Schedule of the Sales Tax Act 1990 lists exempt goods, including unprocessed agricultural produce, basic food items (wheat, milk, fresh vegetables), books, and life-saving medicines.

What are provincial sales tax rates on services in Sindh, Punjab, and Islamabad?

Services tax is administered provincially: Sindh Revenue Board (SRB) charges 13% to 15%, Punjab Revenue Authority (PRA) charges 16%, and Islamabad Excise/FBR charges 15% to 16% on taxable services.

About the Author

Farhan Ahmed

Indirect tax consultant specializing in sales tax registration (STRN), provincial services tax (SRB, PRA, ICT), and FBR monthly e-filing.