LAHORE:The Punjab government has introduced a simplified digital tax deduction system to promote transparency, facilitate taxpayers and encourage digital payments across the province.
Under the new mechanism, sales tax deducted through e-payments and card transactions will now be transferred directly to the government, ensuring greater transparency and efficiency in tax collection.
The Punjab Revenue Authority (PRA) spokesperson stated that sales tax on services provided by beauty parlours, salons and fashion designers has been fixed at five percent. Similarly, cosmetic surgery, plastic surgery, skin treatment and laser treatment centres will also subject to five percent sales tax while event management services, tour operators, gymnasiums and laundry services will be taxed at eight percent.
For the hotel and restaurant sector, customers making cash payments will pay 16 percent sales tax, whereas those using digital payment methods, including credit and debit cards, will pay only eight percent. This effectively provides a 50 percent reduction in the applicable tax rate for digital transactions, encouraging the adoption of cashless payments. The spokesperson emphasised that taxes paid by the public play a vital role in financing the govt's welfare and development projects. Citizens have been urged to make digital payments wherever possible and always obtain a proper tax invoice to ensure the secure and transparent transfer of taxes to the government. The spokesperson requested the public to report food operators who failed to issue proper tax invoices to the Punjab Revenue Authority, adding that transparent tax compliance is essential for ensuring sustainable development, good governance and shared prosperity across Punjab.
