Lahore, November 12, 2025 – The Punjab Revenue Authority (PRA) has launched a major enforcement drive against well-known food chains, cafés, restaurants, and marquees across Punjab for alleged sales tax evasion and non-compliance with tax laws.
According to an official statement issued by PRA on Wednesday, enforcement officers in Lahore, Gujranwala, and Sargodha conducted surprise inspections and seized business records of several popular fast-food franchises and café chains found involved in the misappropriation of collected sales tax on services.
In similar operations across Gujranwala, Rahim Yar Khan, and Bahawalpur, enforcement teams reviewed the financial and tax records of restaurants, catering businesses, and wedding marquees suspected of withholding tax payments.
A PRA spokesperson confirmed that records of four marquees, five cafés, and six restaurants have been confiscated for detailed scrutiny. The authority has warned that heavy financial penalties and legal action will be imposed on businesses collecting sales tax from customers but failing to deposit it into the provincial treasury.
The crackdown is part of PRA’s broader campaign to enhance tax compliance and recover arrears from non-filers and defaulters. Enforcement teams have been mobilized across the province to ensure transparent monitoring and equitable taxation in the services sector.
The spokesperson further stated that tax revenue collection in Punjab has shown a significant increase compared to the same period last year, demonstrating the effectiveness of recent enforcement measures. It was also emphasized that the Punjab government has not introduced any new taxes or increased existing tax rates during the ongoing fiscal year, attributing the growth to improved compliance and monitoring mechanisms.
Key Highlights of PRA Crackdown
| Region | Action Taken | Businesses Inspected | Outcome |
| Lahore, Gujranwala, Sargodha | Records seized from fast-food and café chains | 11 | Suspected tax evasion |
| Rahim Yar Khan, Bahawalpur | Inspections of restaurants and marquees | 4 marquees, 6 restaurants | Non-compliance detected |
| Enforcement Status | Province-wide teams deployed | – | Recovery from defaulters |
| Government Policy | No new or increased taxes | – | Focus on compliance |
| Revenue Trend | Significant rise in tax collection | – | Due to stricter enforcement |