Overview
- The Punjab Revenue Authority implemented the system this Friday, requiring taxes to be deducted at the point of electronic payment and sent directly to the government.
- Restaurants and ready-to-eat outlets will pay 8 percent on card and digital receipts while cash payments will be taxed at 16 percent, a 50 percent cut for cashless transactions.
- Beauty parlours, salons and cosmetic clinics are set at a 5 percent digital tax rate, and event managers, tour operators, gyms and laundries will face an 8 percent rate.
- The PRA is urging consumers to use digital payments, always obtain official receipts and report businesses that do not issue invoices so collected taxes reach government accounts.
- Officials say the move aims to formalize services and raise funds for welfare and development, but it depends on merchants using electronic payment systems and public reporting to detect non-compliance.