Business & Corporate · Section 154 · Tax Year 2026-2027
Export Tax Calculator
Your bank collects a percentage of realised export proceeds. Whether that is the end of your liability or only a floor under normal-basis tax decides what you actually owe — both are priced here.
Step by step
How the two bases differ
The bank collects on the gross
A percentage of proceeds as they are realised, regardless of whether the year was profitable.
Final basis stops there
The collection is the liability. A 15% margin and a 1% margin pay the same.
Minimum basis keeps going
Tax on net income is computed as normal, and you pay whichever is higher — the collection is only a floor.
Settle the difference at filing
Where normal tax exceeds what was collected, the top-up is paid with the return.
Reading the result
Final or minimum changes everything downstream
If the collection is final, that is the end of the matter for that income and your costs are irrelevant. If it operates as a minimum, the amount collected is a floor and your actual position still has to be computed — which means records, and possibly more tax.
Exporters who assume "final" and keep no cost records are in difficulty if the position turns out to be otherwise. The distinction is worth settling before the year end, not at filing.
Collected on realisation, not on shipment
The bank collects when proceeds are realised. An invoice raised and shipped but not yet paid has generated no collection, so a year's shipments and a year's collections do not match. Reconciling the two is what catches proceeds that were never realised at all.
Indirect exporters are in a different position
Supplying an exporter is not the same as exporting. The treatment of an indirect exporter follows its own rules, and a local supplier assuming the export regime applies to them is usually mistaken.
Where this stops
This applies a rate to realised proceeds you enter. Which regime governs your exports depends on what you export and under what arrangement — and that determination, not the arithmetic, is the part worth getting advice on.
FAQs
Export tax FAQs
How is export income taxed in Pakistan?
When export proceeds are realised through a banking channel, the bank collects a percentage of the gross amount. What that collection means is the part that has moved: for years it discharged the liability outright, and it has also been legislated as a minimum — a floor — with tax otherwise computed on net income in the normal way. Pick the basis that applies to your tax year above; the calculator prices both so the difference is visible.
What is the difference between final tax and minimum tax here?
Under a final basis the collection at the bank is the whole liability, however profitable the year was. Under a minimum basis you compute tax on net income as normal and pay whichever is higher, so a high-margin exporter pays more than the collected amount and settles the difference at filing. A thin-margin or loss-making exporter pays the floor either way — that is what makes it a floor.
Does this cover exports of services and IT?
No — services and IT / IT-enabled exports run on their own rate and their own conditions. Use the IT Export Tax Calculator for those. This page is for exports of goods.
Are my costs deductible?
Only on the normal basis. The collection at the bank is a percentage of gross proceeds, so freight, packing, financing and factory costs do not reduce it. That asymmetry is the whole reason the two bases produce different numbers, and it is why the comparison panel asks for your expenses.
What about indirect exporters and export houses?
Supplies against inland back-to-back letters of credit and similar arrangements are dealt with separately, and the rate can differ from a direct export. Check which limb of the section your transaction falls under before adopting the headline rate.
Is the collection creditable if I overpay?
On the normal or minimum basis, tax collected during the year is credit against the year's liability, and an excess is refundable subject to the usual verification. On a final basis there is nothing to refund, because the collection was the liability. Keep the bank certificates either way.
Do I still file a return?
Yes. Export income is declared whichever basis applies, and the statements have to reconcile with what the banks collected. Sales tax zero-rating and duty drawback are separate regimes and are not modelled here.
Related tools
Exporting services rather than goods?
Software, freelancing and IT-enabled services run on their own rate and conditions.
Open IT Export Tax Calculator