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Punjab Increases Restaurant Card Payment Tax

The Punjab Revenue Authority (PRA) has increased the Punjab Sales Tax rate on several service sectors from 5% to 8%, including restaurants, cafés, coffee shops, food chains and other food outlets.

Under the revised rate, all payments made through credit and debit cards at restaurants will now be subject to 8% Punjab Sales Tax, replacing the previous 5% rate.

The revised tax rate also applies to a wide range of service sectors, including marriage halls, catering services, event management companies, travel and tour operators, rent-a-car businesses, fitness centres, apartment house management services and property dealers.

According to the PRA, the 8% sales tax has also been extended to architectural services, warehouses and cold storage facilities, among other sectors. Businesses have been directed to update their invoicing, billing and compliance systems to reflect the new tax rate.

The authority said the revised rate is aimed at increasing revenue collection, broadening the tax base and further documenting the provincial economy.

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  • How on earth with increasing the tax percentage they will increase the tax base ? If they really want to increase the tax base they should have bought it from 5% to 4% so that more n more ppl switch to digital payments. I dun know who advice them

  • This wasn’t the part of Budget but they increased it. The tax is increasing with a very speed whereas Nation isn’t getting anything in return.
    Unfortunately Health, Education and Security situation is so worst that the people intend to opt for private hospital, Schools/College/university and Private security Guards..
    All the tax money is spent on Protocols and luxuries

  • Simple solution, have unity and boycott by not eating in restaurants, once it starts to pinch the owners they will put pressure on the tax authorities to bring the tax down. I wouldn’t be surprised if the Government start taxing us for breathing. It’s so pathetic.

  • Yes this increase will help them in buying another super sonic luxury aircraft for chief minister


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