CUSTOM DUTY AND TAXES CALCULATOR

Calculating customs duty in Pakistan involves a cascading formula that applies various taxes on top of the CIF (Cost, Insurance, and Freight) value of your goods. Marshall Logistics (and Marshall Packers and Movers) provides specialized clearance services to navigate these costs, which are updated for the 2025–2026 fiscal year.

Below is the detailed breakdown of the components and the step-by-step formula used for customs assessment in Pakistan.

1. The Core Components of Duty

To use any calculator or perform a manual check, you need the HS Code (PCT Code) of your item. This 8-digit code determines the specific percentages for:

Tax Component Abbreviation Typical Rates (2025-26)
Customs Duty CD 0%, 3%, 11%, 16%, 20%
Additional Customs Duty ACD 2%, 4%, or 6% (based on CD slab)
Regulatory Duty RD 5% to 50% (higher for luxury items)
Sales Tax GST 18% (Standard)
Additional Sales Tax AST 3% (Usually for commercial importers)
Income Tax (WHT) IT 1% to 11% (Filer vs. Non-Filer rates vary)

2. Calculation Steps (The Cascading Formula)

Customs duties in Pakistan are not simply added together; they are calculated sequentially.

Step 1: Determine Landed Cost (C & F)

First, convert your invoice value to PKR using the current National Bank/State Bank exchange rate.

  • Formula: $Value = (FOB \text{ Price} + \text{Freight} + \text{Insurance}) \times \text{Exchange Rate}$

Step 2: Calculate Basic Duties

  1. Customs Duty (CD): $CD = \text{Landed Cost} \times \text{CD Rate}$

  2. Additional Customs Duty (ACD): $ACD = \text{Landed Cost} \times \text{ACD Rate}$

  3. Regulatory Duty (RD): $RD = \text{Landed Cost} \times \text{RD Rate}$

Step 3: Calculate Sales Tax (GST & AST)

The Sales Tax is calculated on the Value + All Duties paid in Step 2.

  • Value for Sales Tax: $V_{ST} = \text{Landed Cost} + CD + ACD + RD$

  • Sales Tax (GST): $GST = V_{ST} \times 18\%$

  • Add. Sales Tax (AST): $AST = V_{ST} \times 3\%$

Step 4: Calculate Income Tax (Withholding Tax)

The Income Tax is calculated on the sum of everything calculated so far.

  • Value for Income Tax: $V_{IT} = V_{ST} + GST + AST$

  • Income Tax (IT): $IT = V_{IT} \times \text{IT Rate (e.g., 6\% for filers)}$

3. Marshall Customs Service Offerings

Marshall Logistics (Private) Limited and Marshall Packers and Movers offer specific tools to simplify this process:

  • Document Verification: They ensure your invoice and packing list match the WeBOC (Web Based One Customs) requirements to avoid "Value Addition" penalties.

  • Duty Advice: Providing the exact SRO (Statutory Regulatory Order) exemptions. For 2026, many items under the Fifth Schedule (machinery, solar, and agriculture) have reduced rates.

  • Baggage Rules: For overseas Pakistanis, Marshall provides specialized calculators for "Transfer of Residence" (TR) or "Gift Scheme" for vehicles and appliances.

Note: For 2026, the Government has reduced ACD on items in the 15% tariff slab to 2%, and significantly slashed duties on over 7,000 "everyday items" to control inflation.