Credit/Debit Card Tax Calculator
Work out what a dollar subscription or foreign purchase really costs on a Pakistani credit, debit or prepaid card. Enter the price in dollars or the rupee amount from your statement, and see the three charges that ride on top: your bank's FX markup, provincial sales tax on that markup, and federal advance tax under Section 236Y — now 0.5% for filers after the Finance Act 2026 cut it from 5%.
1 USD = Rs 277.66 · live rate · ≈ Rs 5,831 will be charged to your card
What is this, and how do I find mine?
The spread your bank adds over the interbank rate when it converts your rupees to dollars. Usually 3–5%, and it differs from bank to bank. It is never billed as its own line — it is already inside the rupee amount posted against the merchant, which is why the only visible trace is the sales tax charged on it.
To find yours: divide the rupee amount your bank charged by the dollar price, then compare that with the interbank rate on the day of the transaction. Your bank's schedule of charges lists it too, usually as a “foreign currency transaction fee”.
Billed in rupees? Set this to 0. Some merchants (GoDaddy and similar) charge you in rupees and do the conversion themselves. Your bank converts nothing, so there is no markup and no sales tax on it — but §236Y still applies, because the money still leaves Pakistan.
Total cost
Tax (federal + provincial)
Rs 74
Bank FX markup
Rs 278
Where the money goes
You get the §236Y back
§236Y is adjustable, not final. The Rs 29 deducted is credited against your annual tax when you file your return — claim it in your return's adjustable tax section.
Only payments that leave Pakistan
§236Y applies to amounts remitted abroad through a credit, debit or prepaid card — subscriptions, foreign online shopping, ads, hosting, domains, and cash withdrawn abroad. Paying a local merchant in rupees on the same card is not covered: no advance tax, no FX markup.
How it works
A $20 subscription never costs $20. Three separate charges sit between the merchant's price and your bill, and each is calculated on a different base.
1. Your bank's FX markup. Banks do not convert at the interbank rate. They add a spread — typically 3–5%, set in each bank's schedule of charges — and the rupee amount posted against the merchant already includes it. You will not see it as its own line; the only visible trace is the sales tax charged on it.
2. Provincial sales tax on that markup. The markup is a banking service, so your province taxes it: Punjab 16%, Sindh, KPK and Balochistan 15%. On a statement it reads “Punjab ST on CC Fee @ 16%”. Note the base — it is a percentage of the bank's fee, not of the transaction.
3. Advance tax under Section 236Y. Federal, collected by the bank on the full rupee amount remitted abroad. The Finance Act 2026 cut it from 5% to 0.5% for people on the Active Taxpayer List with effect from 1 July 2026; non-filers pay 1%. On a statement it reads “Adv Tax FCY Tran 0.5%”.
A real statement for a $20 subscription in August 2026, on a Punjab card, filer:
- Merchant line — Rs 5,835.22 (the $20 converted, markup inside)
- Punjab ST on CC Fee @ 16% — Rs 44.03
- Adv Tax FCY Tran 0.5% — Rs 29.17
- Real cost — Rs 5,908, about 6% over the interbank price of the same $20
The 236Y is not a cost if you file. It is adjustable, not final: every rupee deducted is credited against your annual liability when you file your return, and refunded if you have overpaid. For a non-filer the rate doubles and the money is only recoverable by filing — which is what makes the Active Taxpayer List worth being on even for someone with no other tax to pay.
The rate shown is the live USD/PKR interbank rate. Set your own bank's markup in the calculator to match your statement exactly — it is the one figure that varies from bank to bank.
Official sources
Frequently asked questions
What is Section 236Y?
Advance tax on persons remitting amounts abroad through credit, debit or prepaid cards. Your bank collects it at the time of the transaction and deposits it with FBR against your CNIC. It appears on your FBR payments and withholding ledger as "Tax on remitting amounts abroad through credit / debit / prepaid cards u/s 236Y".
What is the 236Y rate for 2026-27?
0.5% for people on the Active Taxpayer List and 1% for those who are not. The Finance Act 2026 cut it from 5% (10% for non-filers) with effect from 1 July 2026 — a tenfold reduction.
Can I get the 236Y tax back?
Yes, if you file. Section 236Y is adjustable, not final: the total deducted over the year is credited against your annual tax liability in your return, and any excess is refundable. Your FBR "Payments & Withholding" statement in IRIS lists every 236Y deduction, so you can total them before filing. Non-filers cannot claim anything without filing a return.
Why does my bank charge more than the market dollar rate?
Banks convert at their own card rate, not the interbank rate, and the difference is the FX markup — usually 3–5% depending on the bank. It is bundled into the rupee amount charged for the transaction, so it never appears as a separate line. You can infer it by dividing the rupee amount charged by the dollar price and comparing with the interbank rate that day.
What is the "Punjab ST on CC Fee" line on my statement?
Provincial sales tax on the bank's card fee — the FX markup is a service, and services are taxed by the province your card is issued in. Punjab charges 16%; Sindh, KPK and Balochistan charge 15%. It is charged on the fee, not on the transaction, so it works out to well under 1% of what you spent.
Does 236Y apply to local rupee purchases?
No. It applies only to amounts remitted abroad. A rupee payment to a Pakistani merchant on the same card carries neither the advance tax nor the FX markup.
Does it apply to debit cards and prepaid cards too?
Yes. The section names credit, debit and prepaid cards alike. It also covers cash withdrawn from an ATM abroad and foreign-currency top-ups on a prepaid travel card.
How much do I pay in a year on a $20/month subscription?
At 277.62/USD with a 5% bank markup and Punjab sales tax, roughly Rs 70,800 a year all-in against about Rs 66,600 at the plain interbank rate — some Rs 4,200 of charges, of which around Rs 350 is 236Y you can claim back by filing.
Estimate. Section 236Y advance tax on remitting amounts abroad through credit / debit / prepaid cards: 0.5% for filers and 1% for non-filers from 1 July 2026 (Finance Act 2026); 5% / 10% for the two tax years before that. Provincial sales tax on the bank's card fee: Punjab 16%, Sindh / KPK / Balochistan 15%. The FX markup varies by bank and is not published uniformly — set your own above. The USD rate is the interbank rate, not your bank's card rate. Confirm with your bank and a tax advisor.