Overview of Taxes in Pakistan

This article introduces the customs duties, sales tax and excise tax of Pakistani customs for import and export goods.

[Overview]
Whether individuals or business entities are engaged in the importation of goods into Pakistan, they must pay import duties and other taxes. All import duties and taxes are calculated based on the freight value, i.e. the cost, insurance and freight (CIF). However, some imported goods are levied on a unit of measurement basis.

[Tariffs]
The overall level of tariffs in Pakistan is not high. The current general tax rate is 5%-35%, while cars and alcoholic beverages maintain higher tariffs (200%).

[Sales Tax]
The federal government of Pakistan abolished the value-added tax in the 1990s and replaced it with a sales tax. Since July 2008, the sales tax rate has been 16%-21%. Some goods such as computer software, medicines, and unprocessed agricultural products are exempt from sales tax. Among them, the sales tax rate of most goods is 16%, which is called the general sales tax (GST).

[Others]
Imported goods in Pakistan are subject to consumption tax, which is 5%-100%.