Digital Payments to Face Higher Sales Tax
Restaurant bills in Punjab may become more expensive under a new proposal in the Finance Bill 2026. The provincial government has proposed increasing sales tax on restaurant payments made through digital channels.
The tax rate on debit cards, credit cards, mobile wallets, and QR code payments may rise from 5 percent to 8 percent. If approved, the move will increase costs for customers using digital payment methods.
Dining Out May Become Costlier
The proposed increase will apply to both dine-in and takeaway orders. Consumers paying through digital platforms will pay more tax than before.
However, the government has decided to keep the sales tax on cash and other conventional payments at 16 percent. Officials said the digital payment tax will still remain lower than the tax on cash transactions.
Government Targets Revenue and Documentation
Tax authorities said the proposal aims to increase provincial revenue. They also said it will help improve documentation in the restaurant sector.
If the Punjab Assembly approves the Finance Bill 2026, millions of consumers across the province may see higher restaurant bills.
