Punjab has implemented a new tax deduction system for digital payments, under which tax deducted through e-payments or card transactions will now be transferred directly to the government.

According to the Punjab Revenue Authority (PRA) spokesperson, the initiative aims to ensure transparent tax collection and make the payment system more efficient.

The spokesperson said that services provided by beauty parlours, salons, fashion designers, cosmetic surgery clinics, plastic surgery centres, skin treatment and laser treatment facilities will be subject to a tax rate of 5%.

Likewise, event management services, tour operators, gymnasiums and laundry services will be required to pay 8% tax.

According to the PRA, hotel and restaurant services will be subject to 16% tax on cash payments, while payments made through credit cards or other digital methods will attract 8% tax. This means customers paying digitally in the hotel and restaurant sector will effectively pay 50% less tax than those paying in cash.

The PRA spokesperson said that the taxes paid by the public enable the timely completion of the government’s welfare and development projects. Citizens have been urged to prefer digital payments to ensure the secure transfer of taxes and to always ask for an official receipt for every purchase or service.

The spokesperson further said that complaints should be lodged with the Punjab Revenue Authority against food operators who fail to issue proper receipts, adding that transparent tax payments are key to the province’s development and prosperity.

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