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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