Pakistan International Card Tax Calculator: New 0.5% Rate (2026-27)
Pakistan's Budget 2026-27 slashed the advance withholding tax on international transactions made via Pakistani debit, credit and prepaid cards, from 5% down to just 0.5%. Whether you're paying for a subscription, shopping online from abroad, or spending while travelling, this calculator shows exactly how much less tax you'll pay under the new rate.
The 0.5% rate applies to advance tax on international card transactions under Budget 2026-27. This is an advance tax, adjustable against your annual income tax liability if you file a return, not necessarily a final, non-refundable charge. Filer/non-filer treatment and rates can change, confirm the current rate with your bank or FBR.
Based on the Budget 2026-27 rate as announced. Tax rules can change in any federal budget or SRO, verify the current rate with FBR or your card-issuing bank.
How to use this tool
- Enter the amount of your international card transaction in PKR (convert from USD/other currency first if needed).
- Press Calculate to see the old 5% tax, the new 0.5% tax, and exactly how much you save.
- Remember this is an advance tax, if you file an income tax return, it's adjustable against your final tax liability.
Frequently asked questions
What is the international card tax in Pakistan?
It's an advance withholding tax that banks deduct when you use a Pakistani-issued debit, credit or prepaid card for a transaction in a foreign currency, including online purchases from foreign websites, subscriptions billed abroad, or spending while travelling. It was previously charged at 5%.
What changed in Budget 2026-27?
The government reduced this advance withholding tax from 5% to just 0.5%, effective from the 2026-27 budget, a tenfold cut that significantly lowers the cost of using your card internationally.
Is this tax refundable?
It's an advance tax, not necessarily a final charge, if you file an income tax return, it's adjustable against your total tax liability for the year, and any excess can be refunded. Non-filers may face different treatment under separate rules, so confirm your filer status with FBR.
Does this apply to remittances I receive from abroad?
No, this tax applies to money you spend abroad via a Pakistani card (an outgoing transaction), not to remittances sent to you from overseas, which are governed by separate rules and are generally tax-free when received through proper banking channels.