1. What is Pakistan's Sales Tax?

The standard sales tax rate in Pakistan is 17% as of 2025. This tax is applied to the selling price of taxable goods and services at the point of sale to the end consumer.

2. How Does the Calculator Work?

The calculator uses the simple sales tax formula:

Where:

• \( Price \) — The pre-tax price of goods/services in Pakistani Rupees (PKR)
• \( 0.17 \) — The standard sales tax rate (17%)

Explanation: The tax amount is calculated by multiplying the price by 0.17 (which represents 17%).

3. Importance of Sales Tax Calculation

Details: Accurate sales tax calculation is essential for businesses to comply with Pakistani tax laws, maintain proper financial records, and correctly price goods and services.

4. Using the Calculator

Tips: Enter the pre-tax price in PKR. The calculator will automatically compute the 17% tax amount and the total amount including tax.

5. Frequently Asked Questions (FAQ)

Q1: Is 17% the only sales tax rate in Pakistan?
A: While 17% is the standard rate, some goods and services may have reduced rates or exemptions.

Q2: Who is responsible for collecting sales tax?
A: Registered businesses must collect sales tax from customers and remit it to the Federal Board of Revenue.

Q3: Are all products subject to sales tax?
A: No, certain essential items may be exempt or taxed at reduced rates.

Q4: How often must sales tax be paid?
A: Typically monthly, though frequency may vary based on business registration.

Q5: Can sales tax be reclaimed?
A: Registered businesses can often claim input tax credits for sales tax paid on business purchases.