Punjab Restaurant Tax Rises to 8% on Card Payments
The Punjab Revenue Authority (PRA) has increased the Punjab restaurant tax on credit and debit card payments from 5% to 8%. The revised rate applies to restaurants, cafés, coffee shops, food chains, and other food outlets across the province. The updated tax also covers several other service sectors. Businesses must now update their billing and invoicing systems to comply with the new rules.
More Service Sectors Face Higher Tax
The revised 8% sales tax also applies to marriage halls, catering companies, event management firms, travel agencies, rent-a-car services, fitness centers, apartment management companies, and property dealers. In addition, the new rate covers architectural services, warehouses, and cold storage facilities. Therefore, businesses across these sectors must adjust their systems to reflect the revised tax. According to the PRA, the increase aims to improve revenue collection and expand the provincial tax base. The authority also wants to strengthen the documentation of the economy through better tax compliance.
Consumers who pay with credit
Debit cards at restaurants will now notice the higher sales tax on their bills. Meanwhile, businesses are expected to implement the revised rate without delay. The latest decision forms part of the Punjab government’s broader effort to increase provincial revenue while improving tax administration. Businesses that fail to update their billing systems could face compliance issues under the new regulations.
