Federal Excise Duty on selected goods and services.
Federal Excise Duty
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Value before duty
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Duty-inclusive total
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What Federal Excise Duty actually taxes
Federal Excise Duty, FED, is a tax the federal government levies on a specific list of goods and services rather than on everything. The usual suspects are cigarettes and tobacco, sugary and aerated drinks, cement, and a handful of services such as certain financial and telecom services. It is administered by the FBR under the federal excise schedule, and the defining feature of FED is that there is no single universal rate. Each item carries its own rate, and some are charged as a fixed amount per unit rather than as a percentage. This tool is a quick estimator for a finance person, an importer, or a small manufacturer who needs a fast figure on a percentage-rated item, with the rate left editable precisely because FED is item by item.
Why the rate field is yours to set
The calculator loads an indicative 15% as a placeholder, not as a standard rate, because no standard FED rate exists. The right number for your transaction comes from the federal excise schedule for that exact good or service, so you should look it up and type it in. Some categories sit above 15%, tobacco and certain drinks notably so, while others fall below it, and a few are specific-rate items where a percentage does not apply at all. These rates are revised through the annual Finance Act and occasional notifications, which is why the field is open and why you should confirm the current rate for your item with the FBR rather than relying on the default.
Duty on a PKR 1,000,000 supply at the indicative rate
Take the defaults the tool loads: a value of PKR 1,000,000 and the indicative 15% rate. FED is charged on the value, so the duty is 15% of PKR 1,000,000, which is PKR 150,000. The duty-inclusive total, what the buyer effectively pays once FED is added on top, is PKR 1,150,000. Change the rate to match your item and both figures update proportionally. At a 25% rate the duty would be PKR 250,000 and the inclusive total PKR 1,250,000. The arithmetic is simple, which is the point. The hard part is sourcing the correct rate, not multiplying it.
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FED is not sales tax, and the two can both apply
A frequent confusion is treating FED as if it were the same as sales tax. They are distinct levies and can sit on the same transaction. Sales tax on goods, also called GST, is the broad federal tax collected by the FBR on most goods, while sales tax on services is collected by the provincial authorities, the Sindh Revenue Board, Punjab Revenue Authority, KP Revenue Authority, and Balochistan Revenue Authority. FED is a narrower excise on selected items only. On something like a sugary drink, an excise duty and a sales tax can both be charged, which is why the shelf price carries more tax than either rate alone implies. This tool isolates the FED component so you can see it on its own, then add any applicable sales tax separately.
A practical tip and the mistake to dodge
Before you trust any FED figure, confirm two things: whether your item is in the federal excise schedule at all, and whether it is rated as a percentage or as a fixed amount per unit, per kilogram, per litre, or per thousand sticks. This calculator handles the percentage case. For specific-rate items, a percentage of value gives the wrong answer entirely, so do not force it. The other common slip is reading the duty-inclusive total as the final consumer price. It is not, because any sales tax still has to go on top, and on regulated goods the printed retail price may be set differently again. Use this for the FED slice, then layer the rest.
Is FED charged before or after sales tax?
The ordering depends on the item and the way the law defines the value of supply for that category, and it can affect the final figure. As a rule of thumb, treat FED and sales tax as separate charges and confirm the exact base and sequence for your good or service with the FBR. This tool computes FED on the value you enter and leaves sales tax for you to apply.
Can I claim FED back the way I adjust input sales tax?
In some cases FED paid on inputs can be adjusted against FED payable on outputs, under conditions set in the federal excise law, but it does not work as broadly or automatically as input sales tax adjustment. Whether your specific FED is adjustable depends on the item and your registration, so verify the position with the FBR before assuming a credit.