Sales tax formulas
- Add tax: tax = amount × rate; total = amount × (1 + rate).
- Remove tax: net = total ÷ (1 + rate); tax = total − net.
Worked example
- Adding 18% to Rs 10,000: tax = Rs 1,800, total = Rs 11,800
- Removing 18% from Rs 11,800: net = 11,800 ÷ 1.18 = Rs 10,000, tax = Rs 1,800
Sales tax rates in Pakistan (2026)
| Goods / service | Rate |
|---|---|
| Goods – federal GST | 18% |
| Services – Punjab (PRA) | 16% |
| Services – Islamabad (ICT) | 16% |
| Services – Sindh (SRB) | 15% |
| Services – Khyber Pakhtunkhwa (KPRA) | 15% |
| Services – Balochistan (BRA) | 15% |
Price products with the markup calculator, check your profit margin, or see the GST on your power bill with the electricity bill calculator.
Rates are reported figures for guidance only. Reduced rates and exemptions apply to some goods and services – confirm with FBR or your provincial authority.
Frequently asked questions
What is the GST rate in Pakistan in 2026?
The standard federal sales tax on goods is 18%. Some goods carry reduced rates or exemptions, and sales tax on services is set by each province.
How do I add 18% GST to a price?
Multiply the price by 1.18. Rs 10,000 plus 18% GST is Rs 11,800, of which Rs 1,800 is tax.
How do I remove GST from a price?
Divide the tax-inclusive amount by 1.18 to get the net price. Rs 11,800 ÷ 1.18 = Rs 10,000, so the GST is Rs 1,800. Do not just take 18% off the total – that gives the wrong answer.
What is the sales tax on services in each province?
Reported 2026 rates: Punjab 16%, Islamabad 16%, Sindh 15%, Khyber Pakhtunkhwa 15% and Balochistan 15%. Some services have reduced rates, so check with the provincial revenue authority.
Who has to charge sales tax?
Businesses registered for sales tax with FBR (goods) or a provincial authority (services) must charge it on taxable supplies. Small unregistered retailers do not add it separately.
Last reviewed: October 2026