The Punjab Revenue Authority (PRA) has implemented a new and simplified system for tax deduction on digital payments across the province. Under this system, tax will be deducted directly from e-payments or card transactions and transferred to the government.
Tax Rates for Various Services
According to official sources, the tax rate on services provided by beauty parlors, salons, and fashion designers is set at 5 percent. Similarly, cosmetic surgery, plastic surgery, skin and laser treatment centers will also be taxed at 5 percent. A higher rate of 8 percent applies to event management, tour operators, gymnasiums, and laundry services.
Incentives for Digital Payments in Hotels and Restaurants
For the hotel and restaurant sector, the tax deduction on cash payments is 16 percent, while digital payments attract only 8 percent. This means customers paying by credit card or other digital methods will enjoy a 50 percent reduction in tax compared to cash transactions. The PRA encourages the public to use digital payments and always obtain a receipt to ensure the safe transfer of taxes paid.
Importance of Tax Compliance
PRA officials emphasize that timely collection of taxes is crucial for the completion of government welfare and development projects. They urge citizens to pay taxes digitally and collect receipts. Complaints can be filed with the PRA against food operators who fail to provide receipts. Officials also stated that transparent tax payment is a guarantee of development and prosperity in Punjab.
