New Tax Rate Applies to Restaurants and Food Outlets
The Punjab Revenue Authority has increased the Punjab Sales Tax rate on several service sectors from 5 percent to 8 percent.
The revised rate applies to restaurants, cafés, coffee shops, food chains, and other food outlets.
Under the new rules, all payments made through credit cards and debit cards at restaurants will now be charged 8 percent Punjab Sales Tax.
Previously, these card payments were taxed at 5 percent.
The increase will affect customers who use digital payment methods for dining and food services across Punjab.
Restaurants and food businesses will also need to update their billing systems to apply the new tax rate.
Several Service Sectors Also Covered
The revised sales tax rate is not limited to restaurants.
The Punjab Revenue Authority has extended the 8 percent tax rate to several other service sectors.
These include marriage halls, catering services, event management companies, travel and tour operators, and rent-a-car businesses.
Fitness centres, apartment house management services, and property dealers will also come under the revised tax structure.
The authority said the new rate will also apply to architectural services, warehouses, and cold storage facilities.
This wider coverage shows the government’s effort to bring more service businesses under the provincial tax system.
Businesses Directed to Update Billing Systems
The Punjab Revenue Authority has directed affected businesses to update their invoicing and billing systems.
Businesses must ensure that their compliance procedures reflect the new 8 percent sales tax rate.
The authority said the change is aimed at increasing revenue collection.
It also wants to broaden the tax base and document more parts of the provincial economy.
The move comes as provincial authorities continue efforts to improve tax compliance in the services sector.
For customers, the change may slightly increase the final bill when paying through bank cards at restaurants.
For businesses, the revised rate means stricter tax reporting and updated digital records.
The Punjab Revenue Authority has asked all relevant sectors to follow the new tax requirements and ensure proper implementation.
