New Sales Tax Rates in Pakistan 2026

Sales Tax in Pakistan is one of the most important indirect taxes collected by the Federal Board of Revenue (FBR). It is applied on the sale, import, manufacturing, and distribution of goods and, in some cases, services.

Over the years, Pakistan’s sales tax system has evolved from a simple manufacturing-level tax into a broad-based value-added tax system covering almost all stages of the supply chain. This ensures better documentation, improved tax compliance, and a more structured business environment.

If you are searching for the sales tax rate in Pakistan 2026, or how to register for sales tax in Pakistan. WaysTax, Pakistan’s most trusted tax filing company, helps you understand and manage everything in one place.

What is Sales Tax in Pakistan?

Sales Tax in Pakistan is an indirect tax collected by the FBR on the sale, purchase, import, and manufacturing of goods (and some services). Businesses charge this tax from customers and submit it to the government.

The standard sales tax rate in Pakistan is 18%, with some exemptions and special rates depending on the product or category.

To stay compliant, businesses must complete sales tax registration in Pakistan and file regular returns.

At WaysTax, we help you with easy registration, filing, and full sales tax compliance.

Sales Tax Rate in Pakistan 2026

The standard sales tax rate in Pakistan is:

18% (General Rate)

However, certain goods may be taxed at higher or special rates, such as

• 25% on luxury and non-essential goods (selected categories)
• Reduced rates for specific industries under SROs or schedules

This makes Pakistan’s sales tax system a mix of standard, reduced, and zero-rated supplies depending on the product or sector.

How Sales Tax Works in Pakistan

Sales tax is applied at different stages:

1. Manufacturing Stage

Tax is charged on the production and supply of goods.

2. Import Stage

Tax is collected at customs when goods enter Pakistan.

3. Sales Stage

Registered businesses charge sales tax on invoices issued to customers.

Who Must Register for Sales Tax in Pakistan?

In Pakistan, sales tax registration is mandatory for all individuals and businesses involved in taxable economic activities as defined by the FBR.

You must register for sales tax if you are:

• A manufacturer producing taxable goods
• An importer bringing goods into Pakistan
• A wholesaler or distributor supplying goods in bulk
• A retailer whose turnover exceeds the FBR threshold
• A service provider dealing in taxable services (through provincial tax authorities where applicable)

Once registered, you are legally required to charge, collect, and deposit sales tax on taxable supplies.

Registration Process for Sales Tax in Pakistan

Sales tax registration in Pakistan is done through FBR’s IRIS system and is required for businesses involved in manufacturing, import, trade, or taxable services.

Step 1: NTN Registration

First, get a National Tax Number (NTN) from the FBR IRIS portal.

We also assist with complete NTN registration at Waystax to ensure a smooth and hassle-free tax registration process.

Step 2: Online Application

Log in to IRIS and select Sales Tax Registration. Fill in your business details and submit the form.

Step 3: Required Documents

• CNIC of owner/partners
• Business address proof
• Bank account details
• Business details and relevant documents

Step 4: FBR Verification

FBR verifies your information and may inspect your business premises if needed.

Step 5: STRN Issuance

After approval, you receive a Sales Tax Registration Number (STRN) and certificate.

Step 6: After Registration

You must file monthly returns, maintain records, and issue proper tax invoices.

Sales Tax Returns & Record Keeping in Pakistan

• Registered taxpayers must file monthly sales tax returns through the FBR e-portal
• Tax payment deadline is the 15th of every month
• Return submission is allowed up to the 18th of each month
• Some sectors are eligible for quarterly filing instead of monthly

Record Keeping Requirements

• Maintain complete purchase and sales records
• Keep all documents for at least 5 years
• Store records at business premises for audit purposes
• Ensure records are available for FBR inspection when required

Key Features of Sales Tax System in Pakistan

• VAT-based structure
• Applies at multiple stages of supply chain
• Monthly compliance system
• Electronic filing mandatory for most taxpayers
• Strict record-keeping requirements

Goods and Services Exempt from Sales Tax in Pakistan 2026

Sales Tax Compliance Made Easy with WaysTax

Managing sales tax can be complex due to frequent changes in laws, rates, and filing requirements.

At WaysTax, we simplify the entire process for you.

We help businesses with:

• Sales tax registration
• Monthly return filing
• Compliance management
• Tax advisory and documentation

Stay compliant and avoid penalties with expert support.

Need Help with Sales Tax Registration or Filing?

Sales tax rate in Pakistan plays a vital role in the country’s taxation system. It helps the government generate revenue while improving financial documentation across businesses and industries. 

Whether you are a manufacturer, importer, retailer, or service provider, understanding sales tax laws is essential for running a compliant and profitable business in 2026.

At WaysTax, we simplify everything for you, from registration to filing and full compliance. We help you to focus on growing your business while we handle the tax complexities.