The Punjab Revenue Authority (PRA) has ordered travel agents across the province to collect an 8 percent tax on transactions made through credit cards, according to notices issued to the trade.
PRA has also directed travel agents selling air tickets to install invoice monitoring systems at their offices. The point of sale systems (POS) will be linked to the government network, enabling real-time monitoring of all sales made by travel agencies.
The move has drawn strong opposition from the Travel Agents Association of Pakistan (TAAP), whose members say the directives were imposed without consultation.
TAAP Chairman Syed Yousuf Jamil Rizvi said the travel trade could be adversely affected by decisions enforced without stakeholder input.
He said the association has never refused to pay taxes but maintained that the new system needed to be explained clearly, with stakeholders taken into confidence before implementation.
The tax notices and the monitoring mandate come amid wider efforts by provincial revenue authorities to expand documentation of the services sector and tighten oversight of sales made through digital payment channels.
