VAT & SD Act 2012
Section 15 - Imposition of VAT
(as updated till Finance Ordinance 2025)
(1) Subject to other provisions of this Act‚ VAT shall be imposed and payable on the taxable import and taxable supply.
(2) The payable amount of Value Added Tax shall be assessed and determined by multiplying the VAT rate specified in sub-section (3) with the value of taxable import or of taxable supply.
1[ (3) The rate of VAT, in relation to taxable import or taxable supply‚ shall be 15 (fifteen) percent:
Provided that, the government may, in public interest determine truncated VAT rate or specific amount of tax in relation to any goods or service specified in the Third Schedule:
Provided further that, any registered person may pay VAT at 15 percent rate in prescribed manner, instead of reduced VAT rate or specific tax mentioned in the Third Schedule. ]
1 Section 15(3) was substituted by section 62 of the Finance Act, 2019 (Act No. 10 of 2019) with effect from 01 July 2019.
Disclaimer: This is the authentic English text of The Value Added Tax and Supplementary Duty Act 2012, as published under SRO No. 440-Law/2025/326-Mushak dated 05 November 2025. In the event of any inconsistency or conflict between the content on this website and the official Government publications or gazette notifications relating to laws, rules, regulations or SROs, the official Government publications and notifications shall prevail.