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Import & Export · Business & Trade
How to calculate customs duty in Pakistan (2026-27), with a worked example
How Pakistan import taxes stack up: customs duty, ACD, regulatory duty, 18% sales tax, 3% VAT and income tax, with a full 2026-27 worked example.
- Sales tax on imports
- 18% (+3% resale)
- Duty slabs
- 0% to 25%
- Income tax (filer)
- 1% to 6%
- Example total
- ~82% of CIF
Summarize it for me
AI Summary
Import taxes in Pakistan stack up in layers. Customs duty, additional customs duty and regulatory duty are charged on the customs value, roughly the CIF price. Sales tax of 18%, plus a 3% value addition tax for commercial importers, is charged on that value plus the duties. Advance income tax of 1% to 6% for filers, double for non-filers, comes on top. In our 2026-27 example, metal furniture worth Rs 10 lakh attracts about Rs 8.2 lakh in import taxes.
Import taxes in Pakistan are worked out in layers. Customs duty, additional customs duty and regulatory duty are charged on the customs value (broadly the CIF price). Sales tax of 18%, plus a 3% value addition tax if you’re importing to resell, is then charged on the customs value plus those duties. Advance income tax (1% to 6% for filers, double for non-filers) comes on top.
Import taxes on Rs 10 lakh of metal furniture
Rs 8.21 lakh
Commercial importer on the Active Taxpayers List, 2026-27 rates. Worked example below.
- Base Customs value Price + freight + insurance to port
- Duties CD + ACD + RD On the customs value
- Sales tax 18% + 3% On value + duties
- Income tax 1% to 6% (filer) On value + duties + taxes
What is the customs value?
Under section 25 of the Customs Act, the customs value is the transaction value: the price actually paid for the goods, plus, if not already included, transport to Pakistan’s port, loading and handling for that transport, and insurance. In practice that’s close to the CIF price.
What are the taxes, and what are they charged on?
| Tax | 2026-27 rate | Charged on |
|---|---|---|
| Customs duty (CD) | By PCT code, mostly 0%, 5%, 10%, 15%, 20% or 25% | Customs value |
| Additional customs duty (ACD) | 2% on the 20% slab, 4% on 25% and above (S.R.O. 1063(I)/2026) | Customs value |
| Regulatory duty (RD) | Only on listed codes (S.R.O. 1064(I)/2026), now capped at 20% on most | Customs value |
| Sales tax | 18% | Customs value + duties |
| Value addition tax | 3%, for commercial importers | Customs value + duties |
| Advance income tax (s.148) | 1% to 6% if on the ATL, double if not | Value + duties + sales tax |
ACD doesn’t apply to goods in the 0%, 5%, 10% or 15% slabs unless their code is listed, or to manufacturers’ plant and machinery and some other categories.
Worked example: Rs 10 lakh of metal furniture
A commercial importer on the Active Taxpayers List imports metal furniture (PCT 9403.2000) with a CIF value of Rs 10 lakh.
| Step | Tax | Rate | Base | Amount |
|---|---|---|---|---|
| 1 | Customs value | CIF | Rs 10,00,000 | |
| 2 | Customs duty | 20% | Rs 10,00,000 | Rs 2,00,000 |
| 3 | Additional customs duty | 2% | Rs 10,00,000 | Rs 20,000 |
| 4 | Regulatory duty | 20% | Rs 10,00,000 | Rs 2,00,000 |
| 5 | Value for sales tax | value + duties | Rs 14,20,000 | |
| 6 | Sales tax | 18% | Rs 14,20,000 | Rs 2,55,600 |
| 7 | Value addition tax | 3% | Rs 14,20,000 | Rs 42,600 |
| 8 | Advance income tax | 6% | Rs 17,18,200 | Rs 1,03,092 |
| Total import taxes | Rs 8,21,292 |
That’s about 82% of the CIF value. The duties alone come to Rs 4.2 lakh.
Which goods don’t follow this pattern?
- Household electrical and gas appliances, such as ovens, are “Third Schedule” goods: sales tax is charged on the printed retail price, and the 3% value addition tax doesn’t apply.
- Manufacturers importing raw materials or machinery for their own use don’t pay the 3% value addition tax, and pay lower income tax at import (1% for many).
- Mobile phones have fixed rupee duties and taxes per set.
Can I get any of it back?
If you’re registered for sales tax, the 18% sales tax and the 3% value addition tax paid at import are input tax, adjusted against the sales tax you charge when you sell.
What changed in the 2026-27 budget?
Under the National Tariff Policy 2025-30, the budget cut customs duty on 92 tariff lines, cut ACD on over 3,000 lines (for example 4% to 2% on 2,107 lines) and capped regulatory duty at 20% on 359 lines. Rates from last year may be out of date.
First, find your code: see how to find your HS code. To set up as an importer, see the import/export checklist.
More guides: Import & Export.
Questions people ask
How much customs duty is charged in Pakistan?
It depends on the 8-digit PCT code. The 2026-27 tariff mostly uses slabs of 0%, 5%, 10%, 15%, 20% and 25%, and some goods also carry additional customs duty and regulatory duty.
How do I calculate import duty in Pakistan?
Start from the customs value: the price paid plus freight and insurance to the port. Apply customs duty, additional customs duty and regulatory duty to it. Then charge 18% sales tax (plus 3% value addition tax if you're reselling) on the value plus duties, and income tax on top.
What is additional customs duty?
An extra duty set by S.R.O. 1063(I)/2026: 2% on goods in the 20% customs duty slab and 4% on goods in the 25% and higher slabs, with a list of exceptions.
Do non-filers pay more at import?
Yes. Advance income tax at import is doubled for anyone not on the Active Taxpayers List, for example 12% instead of 6% for a commercial importer of most goods.
Can I get the sales tax back?
If you're registered for sales tax, the sales tax and 3% value addition tax paid at import count as input tax, which you adjust against the sales tax you charge when you sell.
Sources
- Pakistan Customs Tariff FY 2026-27, FBR (accessed 7 Oct 2026)
- Salient Features, Budget 2026-27, FBR (accessed 7 Oct 2026)
- S.R.O. 1063(I)/2026: Additional Customs Duty, Revenue Division / FBR (accessed 7 Oct 2026)
- S.R.O. 1064(I)/2026: Regulatory Duty, Revenue Division / FBR (accessed 7 Oct 2026)
- The Customs Act, 1969 (amended up to 30 June 2026), FBR (accessed 7 Oct 2026)
- Sales Tax Act, 1990 (updated up to 30 June 2026), FBR (accessed 7 Oct 2026)
- Withholding Income Tax Rate Card, Tax Year 2027, FBR (accessed 7 Oct 2026)
- Income Tax Ordinance, 2001 (amended up to 30 June 2026), FBR (accessed 7 Oct 2026)