The Punjab Revenue Authority (PRA) has rolled out a new digital tax collection framework that significantly reduces the tax burden on customers using electronic payment methods while streamlining tax transfers to the government.
Under the new policy, tax deducted through e-payments and card transactions will automatically be deposited into the government account, eliminating intermediary processes and improving transparency.
As part of the reforms, hotel and restaurant customers making digital payments will pay only eight percent tax compared with 16 percent on cash transactions, providing a strong incentive for consumers and businesses to adopt cashless payment methods.
The PRA has also fixed a five percent tax rate on digitally paid services offered by beauty parlours, salons, fashion designers, cosmetic surgery clinics, plastic surgery centres, skin treatment facilities and laser clinics.
Meanwhile, digital payments for event management services, tour operators, gymnasiums and laundry services will attract an eight percent tax.
The authority said the initiative is designed to strengthen tax compliance, improve revenue collection and promote digital financial transactions across Punjab. It added that tax revenues play a critical role in funding public welfare and development projects.
The PRA advised consumers to insist on proper tax invoices after every transaction and report food operators that fail to issue receipts, saying the success of the new system depends on transparent tax collection and public cooperation.
