LAHORE: The Punjab Revenue Authority (PRA) has revised the Punjab Sales Tax rate for several service sectors. Under the new policy, the Card Payment Tax applicable to restaurant transactions made through credit and debit cards has increased from 5% to 8%.
The revised tax rate applies to restaurants, cafés, coffee shops, food chains, and other food outlets across Punjab. Customers who pay their bills using credit or debit cards will now be charged the updated 8% Punjab Sales Tax instead of the previous 5%.
The increase in the Card Payment Tax is part of a broader revision introduced by the PRA. The authority has also expanded the higher tax rate to several other service sectors operating in the province.
According to the updated notification, the revised 8% Punjab Sales Tax now applies to marriage halls, catering businesses, event management companies, travel and tour operators, rent-a-car services, fitness centres, apartment house management services, and property dealers.
The new tax rate has also been extended to architectural services, warehouses, and cold storage facilities. Businesses operating in these sectors are required to update their billing and invoicing systems to ensure compliance with the revised tax rules.
The PRA has instructed all affected businesses to make the necessary changes to their accounting and tax collection systems. These updates are intended to ensure that customers are charged the correct tax amount under the new policy.
Officials said the increase in the Card Payment Tax and other revised sales tax rates is aimed at improving provincial revenue collection. The authority also believes the measure will help broaden the tax base and encourage better documentation of economic activity across Punjab.
Businesses are expected to comply with the revised rates immediately. Failure to update billing systems could result in incorrect tax collection and possible regulatory action under applicable tax laws.
Restaurant owners and service providers may also need to inform customers about the revised tax rates. This could help avoid confusion when payments are made through debit or credit cards.
The PRA has stated that these tax changes form part of its ongoing efforts to strengthen the provincial tax system. By expanding the list of sectors covered under the revised rates, the authority hopes to improve tax compliance and increase public revenue.
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The revised Card Payment Tax is now effective for eligible transactions. Customers paying by card at restaurants and other covered businesses will notice the updated 8% Punjab Sales Tax reflected on their invoices. Businesses have been advised to ensure full compliance with the new regulations to avoid any disruptions.
