New tax deduction system implemented on digital payments in Punjab

A new tax deduction system has been implemented in Punjab on digital payments, under which tax deducted through e-payment or card will now be transferred directly to the government.

According to a spokesperson for the Punjab Revenue Authority (PRA), the aim of this move is to ensure transparent tax collection and make the payment system more effective.

According to the spokesperson, the tax rate on services provided by beauty parlors, salons, fashion designers, cosmetic surgery, plastic surgery, skin treatment and laser treatment centers has been fixed at only 5 percent.

Similarly, event management, tour operators, gymnasiums and laundry services will have to pay 8 percent tax.

According to the PRA, there will be a 16 percent tax deduction for services paid in cash in the hotel and restaurant sector, while the tax rate will be 8 percent for payments made through credit cards or other digital means. In this way, 50 percent less tax will be paid on tax payments made through credit cards and digital payments in the hotel and restaurant sector.

The spokesperson of the Punjab Revenue Authority says that the timely completion of the government’s welfare and development projects is possible only with the taxes paid by the public. Citizens have been appealed to prefer digital payments for the safe transfer of taxes and must demand a receipt for every purchase or service.

The spokesperson further said that complaints should be filed with the Punjab Revenue Authority against food operators who do not provide a receipt, because transparent payment of taxes is the guarantee of development and prosperity in the province.