LAHORE: The Punjab Revenue Authority (PRA) has implemented a new and simplified tax deduction system for digital payments across the province, with taxes collected through electronic transactions now being transferred directly to the government.
According to the PRA, services provided by beauty parlours, salons, fashion designers, cosmetic surgery clinics, plastic surgery centres, skin treatment facilities, and laser clinics will be subject to a 5% tax rate under the revised system.
Event management companies, tour operators, gymnasiums, and laundry services will be taxed at 8%.
For the hospitality sector, customers paying in cash at hotels and restaurants will continue to pay a 16% tax, while those using digital payment methods will be charged only 8%, effectively reducing the tax burden by half for digital transactions.
The PRA said tax revenues play a vital role in funding the government’s welfare and development projects. It urged the public to use digital payment methods and always obtain official receipts to ensure taxes are properly transferred to the government.
The authority also encouraged citizens to report food businesses that fail to issue official receipts, adding that transparent tax collection is essential for the province’s development and economic growth.
