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How to Add or Remove GST in Pakistan (18% Standard Sales Tax Rate)

Quick Answer

Pakistan's standard sales tax (GST) on goods is 18% under section 3(1) of the Sales Tax Act, 1990. To add it: price × 1.18. To remove it from a total: total ÷ 1.18. Example: Rs 10,000 + 18% = Rs 11,800, and Rs 11,800 ÷ 1.18 = Rs 10,000 before tax.

Overview

This calculator adds sales tax to a price or takes it out of a tax-inclusive total. It shows the tax amount and either the total with tax or the price before tax. The federal standard rate in Pakistan is **18%** of the value of taxable supplies and imports. It was raised from 17% to 18% by the Finance (Supplementary) Act, 2023 (SRO 179(I)/2023, 14 February 2023), and the Finance Act, 2026 did not change it. **Note:** the calculator's rate box currently defaults to 17%. Enter **18** for the current standard rate, or the specific rate that applies to your goods.

How It Works

1. Enter the amount. 2. Enter the tax rate in % (18 for the standard rate). 3. Choose a mode: - **Add Tax to Price** – the amount is before tax. - **Remove Tax from Total** – the amount already includes tax. 4. Calculate. The calculator works for any percentage-based tax, so you can also use it for other rates, such as reduced rates or provincial sales tax on services.

Formula Summary

**Add tax:** Tax = Price × Rate ÷ 100; Total = Price + Tax **Remove tax:** Price before tax = Total ÷ (1 + Rate ÷ 100); Tax = Total − Price before tax The tax fraction of an inclusive total is Rate ÷ (100 + Rate). At 18% that is 18 ÷ 118 = 15.25% of the total. The Sales Tax Act uses this same formula when tax has to be worked out from a tax-inclusive price. | Mode | Amount | Rate | Tax | Result | |---|---|---|---|---| | Add | Rs 10,000 | 18% | Rs 1,800 | Total Rs 11,800 | | Remove | Rs 11,800 | 18% | Rs 1,800 | Before tax Rs 10,000 | | Remove | Rs 5,000 | 18% | Rs 762.71 | Before tax Rs 4,237.29 |

Worked Example

A shop invoice shows Rs 59,000 including 18% GST for a laptop. What is the price before tax? Price before tax = 59,000 ÷ 1.18 = **Rs 50,000** GST = 59,000 − 50,000 = **Rs 9,000** The wrong way: 18% of 59,000 = Rs 10,620, giving a "pre-tax" price of Rs 48,380. That overstates the tax by Rs 1,620. **Further tax for unregistered buyers:** under section 3(1A), when a registered seller supplies to a buyer who is not registered (or not an active taxpayer), a further 4% is charged on top of the standard rate, unless a notification excludes that supply. On a Rs 50,000 supply that is 18% + 4% = 22%, i.e. Rs 11,000. Enter 22 as the rate to check such an invoice.

Interpretation

18% is the standard rate, but not every item uses it. The Sales Tax Act has schedules for exempt goods, reduced rates, goods taxed on printed retail price (Third Schedule) and special regimes. Check the rate printed on your invoice or the relevant schedule. Sales tax on **services** is mostly levied by the provinces (and by the federal government in Islamabad Capital Territory), each at its own rate. Use the rate on your service invoice. The calculator gives the arithmetic only. It does not decide which rate applies.

Editorial Note

Rates are taken from FBR's published Sales Tax Act, 1990, SRO 179(I)/2023 and Circular 01 of 2023, and the Finance Act, 2026 was checked for later changes to the standard rate. Examples were checked by hand. This is general information, not tax advice; the rate on your invoice and the law as amended prevail. Last reviewed: October 2026.

Key Points

  • - Standard GST on goods in Pakistan: 18% (Sales Tax Act 1990, s.3(1)).
  • - Add GST: × 1.18. Remove GST: ÷ 1.18.
  • - Tax inside an 18%-inclusive total is 15.25% of it, not 18%.
  • - Further tax of 4% applies on supplies to unregistered persons, unless excluded.
  • - Some goods are exempt or taxed at other rates; services fall under provincial laws.
  • - The calculator defaults to 17%; change it to 18 for the standard rate.

Common Uses

  • - Checking GST on a shop or supplier invoice.
  • - Finding the pre-tax price from a tax-inclusive quote.
  • - Pricing products to include sales tax.
  • - Preparing figures for a sales tax return or input tax claim.
  • - Comparing quotes where one includes tax and one does not.

Common Mistakes

  • - **Taking 18% of an inclusive total.** Divide by 1.18 instead.
  • - **Using the old 17% rate.** The standard rate has been 18% since February 2023.
  • - **Applying 18% to every product.** Exempt, reduced-rate and retail-price goods follow their own schedules.
  • - **Forgetting further tax.** Supplies to unregistered buyers can carry an extra 4%.
  • - **Mixing up federal and provincial sales tax.** Services are usually taxed under provincial laws at different rates.

Search Topics

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References

  • - https://download1.fbr.gov.pk/Docs/202586148252375SalesTaxActupdatedupto2025-26.pdf (FBR – Sales Tax Act, 1990 amended up to 2025-26: s.3(1) eighteen per cent; s.3(1A) further tax four per cent)
  • - https://download1.fbr.gov.pk/SROs/20232151124337684SRO179-2023.pdf (FBR – SRO 179(I)/2023, rate raised from 17% to 18%)
  • - https://download1.fbr.gov.pk/Docs/20232281524459451Circular01-2023SalesTaxFederalExcise.pdf (FBR – Circular 01 of 2023 explaining the 18% standard rate)
  • - https://download1.fbr.gov.pk/Docs/20266291261044366FinanceAct2026.pdf (FBR – Finance Act, 2026, checked for changes to s.3 rate)

Faqs

What is the GST rate in Pakistan in 2026?

The standard rate under section 3(1) of the Sales Tax Act, 1990 is 18%. The Finance Act, 2026 did not change it.

How do I remove 18% GST from a price?

Divide the total by 1.18. Rs 11,800 ÷ 1.18 = Rs 10,000 before tax, so the tax is Rs 1,800.

How do I add 18% GST to a price?

Multiply by 1.18. Rs 10,000 × 1.18 = Rs 11,800.

When did sales tax go from 17% to 18%?

Through the Finance (Supplementary) Act, 2023 and SRO 179(I)/2023 dated 14 February 2023.

What is further tax?

An extra 4% under section 3(1A), charged when a registered person supplies to a buyer who is not registered or not an active taxpayer, unless a notification excludes it.

Is GST the same on services?

No. Sales tax on services is mainly charged under provincial laws at their own rates. Check your invoice.

Why does the calculator show 17%?

The rate box has a 17% default. Type 18 for the current standard rate.

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