The Punjab government has announced significant tax relief aimed at encouraging digital payments and supporting the transition toward a cashless economy. Under the Punjab Revenue Authority’s policy, hotels and restaurants will be subject to an 8 percent tax rate on eligible digital transactions, compared with 16 percent for cash payments.
The initiative is intended to encourage customers and businesses to use electronic payment methods while improving transparency in tax collection. A system for automated tax deduction through e-payments and card transactions is also planned to streamline the collection process and strengthen documentation.
Authorities expect greater use of digital transactions to simplify the tax system, improve revenue collection and support public welfare and development initiatives across Punjab.
