Skip links

Pakistan sales tax increase 17% to 18%

Debt talks with International Monetary Fund prompt 1% sales tax rise 14 February 2023

The Pakistan Parliament has passed a supplementary Finance Bill with a 1% rise in its sales tax from 17% to 18%. This would secure badly needed funding to cover import costs and external debts. This includes crucial next round of IMF funding for which talks have paused.

The implementation date is 14 February 2023.

Inflation is now running at 27%, and likely to rise further. The Bill includes a sales tax exemption from basics, including:

  • wheat;
  • rice;
  • milk; and
  • meat.

There will also be a new in luxuries sales tax rate of 25%  on:

  • first and business-class air travel;
  • expensive mobile phon
  • cigarettes; and
  • sugary drinks.


Get our latest news right in your mailbox