How do I calculate 18% sales tax?

Multiply the pre-tax price by 0.18 and add it. To find the tax inside a tax-inclusive price, divide by 1.18 to get the base price and subtract.

Which rate applies to services in Karachi?

Sindh Revenue Board's 15% standard rate. Punjab (PRA) charges 16%. The rate follows where the service is provided or received under each authority's rules.

An extra 4% a registered seller must charge when selling taxable goods to someone who is not sales-tax registered. Getting registered removes it and lets the buyer claim input tax.

Is sales tax charged on top of income tax withholding?

Yes: they are separate. Withholding income tax on purchases (s.153) is deducted by the buyer from the payment; sales tax is added to the invoice.

Taxv1.0.0Last reviewed 15 Sept 2026

Sales Tax Calculator Pakistan (GST 18% & Services Tax)

Add or back out sales tax: 18% federal GST on goods, provincial services tax (PRA 16%, SRB 15%, KPRA 15%) and the 4% further tax on sales to unregistered buyers. Works from tax-inclusive or exclusive amounts.

Sales tax to addRs 18,000

Rates last reviewed 15 Sept 2026. How this is calculated

Rs 100,000 plus 18% tax is Rs 118,000, Rs 18,000 of tax.

Breakdown

Price before tax: Rs 100,000
Federal sales tax (FBR): 18%: Rs 18,000
Total with tax: Rs 118,000
Effective rate: 18%

Warning: Some goods carry reduced or higher rates (e.g. petroleum, pharmaceuticals, retail POS items) and some are exempt under the Sixth Schedule, check the Sales Tax Act schedules for your item.

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How this is calculated

Goods are taxed by FBR under the Sales Tax Act 1990 at the standard rate of 18% (s.3). A registered seller supplying to an unregistered buyer adds further tax of 4% (s.3(1A)). Reduced rates, fixed rates and exemptions exist for specific goods in the Third, Sixth and Eighth Schedules.

Services are a provincial subject since the 18th Amendment. Each authority sets its own standard rate: Punjab Revenue Authority 16%; Sindh Revenue Board, KP Revenue Authority and Balochistan Revenue Authority 15%; Islamabad Capital Territory 15% (collected by FBR). Many services have reduced rates (with input tax disallowed), telecom, restaurants and IT are common exceptions.

Inclusive vs exclusive: for a tax-inclusive amount, price before tax = amount ÷ (1 + rate); tax = amount − that.

Frequently asked questions

How do I calculate 18% sales tax?: Multiply the pre-tax price by 0.18 and add it. To find the tax inside a tax-inclusive price, divide by 1.18 to get the base price and subtract.
Which rate applies to services in Karachi?: Sindh Revenue Board's 15% standard rate. Punjab (PRA) charges 16%. The rate follows where the service is provided or received under each authority's rules.
What is further tax?: An extra 4% a registered seller must charge when selling taxable goods to someone who is not sales-tax registered. Getting registered removes it and lets the buyer claim input tax.
Is sales tax charged on top of income tax withholding?: Yes: they are separate. Withholding income tax on purchases (s.153) is deducted by the buyer from the payment; sales tax is added to the invoice.

Sources

Sales Tax Act 1990 s.3 (18%); PRA, SRB, KPRA, BRA and ICT services tax schedules: FBR and provincial revenue authorities

Version 1.0.0 · reviewed 15 Sept 2026. Rates change with the Federal Budget and regulator notifications; we update this tool when they do. Confirm with the primary source before making financial decisions.

Topics:FBR