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Why pay Sales tax and Income tax on import ???

Mujahid Memon

SENIOR MEMBER
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Apr 24, 2012
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Country
Pakistan
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Pakistan
I was looking on internet about import tax and duties in Pakistan. I went to a page and a video linked below;

https://geniusimpex.org/calculate-import-customs-duty-and-taxes/



But I cannot understand why I have to pay Sales Tax and Income besides Custom duties because as far as I know, Sales tax is applied when we sell some item/product to a customer and income tax is applied on net income of a person if its above a certain threshold (600k per year as of 2019)
 
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you have to pay following taxes on port.
Custom duty, Sales tax, Additional Custom duty, Additional Sales tax, Income Tax.For example your product is of 100 Pkr.
20 % custom duty 120
17 % sales tax 120 +20.4= 140.4
7 % Additional Custom Duty 140.4 +9.828= 150.228
3 % Additional Sales Tax 150.228 +4.506 = 154.73
5.5% Income Tax 154.73 +8.51 = 163.24
Now your cost is 163.243
let say u sell it at 200 plus Gst which is 200+34= 234
When you file sales tax return at month end. you have to deposit 34 - (20.4 + 4.506)
which is 9.094 pkr
 
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