LAHORE – The Punjab government has introduced a new tax deduction system for digital payments, with revised rates applied to various service sectors, including restaurants, across the province.
According to the Punjab Revenue Authority (PRA), customers making payments through cards or electronic payment methods will have taxes deducted directly and transferred to the government.
In the restaurant sector, including cafes, food outlets, ice cream parlours, coffee shops, and other ready-to-eat food service businesses, an 8 percent tax will be charged on the gross value of card and digital payments.
The authority said restaurants will receive a 50 percent tax relief on credit card and digital payment transactions compared with cash payments.
Hotels and restaurants will be subject to a 16 percent tax on cash payments, while digital payments will attract an 8 percent tax.
The new rates also apply to other service categories. Beauty parlours, salons, fashion designers, cosmetic surgery, plastic surgery, skin treatments, and laser treatment services will carry a 5 percent tax rate.
Meanwhile, event management companies, tour operators, gyms, and laundry services will be charged an 8 percent tax.
The Punjab Revenue Authority has advised citizens to report food operators who fail to provide proper receipts. The authority said the digital payment tax collected through electronic transactions will be directly transferred to the government.
