Pakistan VAT / Sales Tax
Detailed vat / sales tax rates and rules for Pakistan in 2026.
VAT / Sales TaxPKR
Pakistan's General Sales Tax (GST) is levied at 18% on most goods (increased from 17% in recent budgets). Services are taxed by provincial governments at varying rates (13-16% in most provinces). Essential food items, pharmaceuticals, and agricultural inputs are exempt or zero-rated. Import stage GST may be higher for certain luxury goods.
Standard Rate
18%
Registration Threshold
PKR 10 million annual turnover
Reduced Rates
0% — Exports, basic food items, and certain essential goods12% — Certain locally produced goods
How Pakistan VAT / Sales Tax compares
Pakistan’s standard VAT / sales tax rate of 18% is the 53rd highest of 203 countries TaxAtlas tracks, above the global average of 13.7% and Asia’s regional average of 9.6%.
Pakistan
18%
Asia average
9.6%
Global average
13.7%
