Lahore (Commerce Desk) A new and easy system for tax deduction on digital payments has been implemented across Punjab. According to the spokesperson of the Punjab Revenue Authority (PRA), the tax received through e-payment or cards will now be transferred directly to the government.
Under the new system, a 5 percent tax rate has been fixed on the services of beauty parlors, salons and fashion designers, while only 5 percent tax will also be applicable on cosmetic surgery, plastic surgery, skin and laser treatment centers.
According to the spokesperson, an 8 percent tax will have to be paid on event management, tour operators, gymnasiums and laundry services.
The PRA says that on cash payments, a 16 percent tax will be deducted on hotel and restaurant services, while an 8 percent tax deduction will apply on digital payments. In the hotel and restaurant sector, the tax rate through credit cards and digital payments will be reduced by 50 percent.
According to the Punjab Revenue Authority, taxes paid by the public make it possible to complete government welfare and development projects on time. Citizens have been urged to prefer digital payments for secure tax transfer and must obtain a proper receipt.
The spokesperson said that complaints can be lodged with the Punjab Revenue Authority against food operators who do not provide proper receipts. According to them, transparent tax payment is a guarantee of development and prosperity in the province.