Punjab has introduced a new digital payment tax system that offers restaurant customers a 50 percent tax discount when they pay through credit cards or other digital methods instead of cash.
According to a spokesperson for the Punjab Revenue Authority (PRA), tax collected through e-payments or card transactions will be transferred directly into the government treasury.
Under the new policy, a five percent tax has been imposed on services including beauty parlors, salons, fashion designers, cosmetic surgery, plastic surgery, and skin and laser treatments.
An 8 percent tax will apply to event management, tour operators, gyms, and laundry services.
At restaurants and hotels, cash payments will be taxed at 16 percent, while payments made through credit cards, debit cards, and other digital channels will be taxed at only 8 percent. This means customers who pay digitally will receive a 50 percent tax discount compared to those who pay in cash.
The PRA spokesperson has urged citizens to report any restaurant or food operator that fails to issue a proper receipt to the relevant authorities.
