Sales tax calculator (Pakistan)
Add Pakistan’s 18% sales tax in one step: Rs 2,500 plus tax is Rs 2,950, and Rs 2,950 with tax included holds Rs 450 of it. Selling to a buyer without sales tax registration adds a 4% further tax: Rs 3,050 in all.
Updated:
With Sales Tax
Rs 2,950
Sales Tax
Rs 450
Without Sales Tax
Rs 2,500
Worked out in your browser; the amounts you type are not sent anywhere.
How to calculate sales tax
- Add sales tax: tax = value before tax × 18% (Sales Tax Act, 1990, section 3); price with tax = value × 1.18.
- Remove sales tax: value before tax = price with tax ÷ 1.18; tax = the difference, or the price × 18 ÷ 118.
- The calculator works in whole rupees, rounding half up. When the tax is taken out of a price, the value and the tax always add up to the price.
Rs 1,000 including 18% sales tax: 1,000 ÷ 1.18 = 847.46 → Rs 847 before tax Sales tax: 1,000 − 847 = Rs 153
Sales tax is not 18% of the tax-inclusive price. 18% of Rs 5,900 is Rs 1,062, but the tax inside Rs 5,900 is Rs 900: 5,900 × 18 ÷ 118.
Further tax: 4% more when the buyer is not registered
When a registered person makes a taxable supply to a buyer who has no sales tax registration number, or who is not an active taxpayer, section 3(1A) adds a further tax of 4% of the value on top of the 18%. The Federal Government can exclude some supplies from it by notification. Choose the 22% rate in the calculator to see the two parts.
Goods worth Rs 50,000 before tax, sold to a shop with no sales tax registration: Sales tax: 50,000 × 18% = Rs 9,000 Further tax: 50,000 × 4% = Rs 2,000 Total: Rs 61,000
In the Act, an active taxpayer is a registered person who is not blacklisted or suspended, and who has not failed to file, on time, two sales tax returns in a row, the income tax return or the withholding tax statements.
Packaged goods taxed on the printed retail price
Goods in the Third Schedule are taxed at 18% of the retail price instead of the value of the sale, and the manufacturer or importer prints the retail price and the amount of sales tax on each pack (section 3(2)(a)). The list includes fruit juices, soft drinks, tea, toilet soap, detergents, shampoo, toothpaste, bottled water and branded spices in retail packs.
Services: provincial sales tax
This calculator’s rates are the federal sales tax on goods. Since the 18th Amendment, the power to tax services lies with the provinces, which charge sales tax on services under their own laws and at their own rates (Sindh, for example, under the Sindh Sales Tax on Services Act, 2011). For a service, choose Other rate and type your province’s rate.
Sales tax and your credit book
Write a sale on credit (udhaar) at what the customer will pay, tax included. Baki Fast is a credit book, not invoicing software: it does not issue sales tax invoices, so keep issuing those as usual. More in selling on credit: the rules.
Sources
- FBR: Sales Tax Act, 1990 (as amended up to 30th June, 2026), section 3: 18% sales tax, 4% further tax, Third Schedule at 18% of the retail price (checked 3 Nov 2026)
- Sindh High Court: Pakistan Mobile Communication Ltd. v. Federation of Pakistan, C.P. No. D-4778 to 4780 of 2021: the power to tax services lies with the provinces (checked 3 Nov 2026)
Put this calculator on your site
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This page is general information, not legal, tax or financial advice. Rules differ by country and change over time; check with an accountant or a lawyer before you decide.
Questions
What is the sales tax calculation formula in Pakistan?
Sales tax = value before tax × 18%. From a tax-inclusive price, tax = price × 18 ÷ 118: Rs 11,800 × 18 ÷ 118 = Rs 1,800, and the value before tax is Rs 10,000.
Is the sales tax rate different for filers and non-filers?
The rate is 18% either way. What adds to the bill is the buyer’s status: a registered seller charges a further 4% when the buyer has no sales tax registration or is not an active taxpayer, and under the Act a registered person who has not filed their income tax return on time is not an active taxpayer.
How do I calculate sales tax (GST) in Excel?
With the value before tax in cell A2, the tax is =A2*18% and the total =A2*1.18. With a tax-inclusive price in A2, the value before tax is =ROUND(A2/1.18,0) and the tax =A2-ROUND(A2/1.18,0).