Tax Overview and Recommendations

3 Indirect Tax (e.g. VAT/GST) Indirect Tax Standard Rate Further information KPMG Sales Tax The standard rate of sales tax on goods is 17 percent. However, this may vary (up, down or zero) in specified cases. Certain goods are exempt from sales tax. Sales tax on services is levied and administered separately by each province. The rate varies from 13 percent to 16 percent depending upon the province i.e. Sindh, Punjab, Khyber Pakhtunkhwa and Balochistan as well as Islamabad Capital Territory. This may further go O down for specified services in specific province. Effective July 2016, sales tax paid on services is no more adjustable as input claim against sales tax on goods. For more detailed indirect tax information across various countries, refer to: KPMG's 2016 Asia Pacific Indirect Tax Guide © 2016 KPMG International Cooperative ("KPMG International"). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. All rights reserved. 9

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