The Government of Punjab has implemented a new tax deduction system for digital payments across the province to ensure greater transparency in tax collection.
According to the Punjab Revenue Authority, tax deducted through e-payments or card transactions will be transferred directly to the government treasury.
Under the new system, services provided by beauty parlours, salons, and fashion designers will be subject to a tax rate of 5 percent.
According to the official statement, cosmetic surgery, plastic surgery, skin treatment, and laser treatment centres will also be taxed at 5 percent. Meanwhile, event management services, tour operators, gymnasiums, and laundry services will be subject to an 8 percent tax.
For the hotel and restaurant sector, cash payments will be subject to a 16 percent tax deduction, while digital payments will be taxed at 8 percent. This means hotels and restaurants will pay 50 percent less tax on payments made through credit cards and other digital payment methods.
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