- Pakistan keeps its regular sales tax rate at 18% for the tax year 2025
- The decision follows a previous increase from 17% to 18% as per the Finance Supplementary Act of 2023
- Sales tax applies to taxable supplies by registered persons and all goods imported into Pakistan
- An additional 4% tax is charged on supplies to unregistered entities or individuals, with possible exemptions by the Federal Government
- Special tax provisions include taxes based on production capacity or fixed rates for certain goods and industries
- Tax rates and methods can be adjusted by the Federal Government through official notifications
- Tax liability for supplied goods falls on the supplier, and for imported goods, on the importer
- Special tax rules apply to retailers, including tax collection through electricity bills and mandatory sales reporting for Tier-1 retailers
- Minimum production requirements are set for certain goods, with penalties for underproduction
- The government has flexibility in applying sales tax to specific sectors, such as natural gas and electricity for CNG stations
Source: pkrevenue.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
