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Pakistan raises GST / Sales Tax on exports

  • VAT
  • 04 June 2014 | Richard Asquith

Pakistan raises GST / Sales Tax on exports

The antiquated Pakistani Goods & Services Tax (GST) regime has drawn fresh criticism with plans to hike the GST / Sales Tax rate on exports from 2% to 5%.

Pakistan’s GST regime is due for reform, with the implementation of a full Value Added Tax regime based on OECD recommendations being planned. However, in the meantime, manufactures are having to struggle with a tax system prone to double taxation and delayed refunds.

A range of export industries are also liable to GST at 2%. It is unusual for consumption taxes to be levied on exports since the final consumers are outside of the country. In Pakistan, textiles manufactures are liable to the charge, as well as non-taxable persons sending goods abroad – often at 1%.


VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.