PRA says 5% Punjab Sales Tax applies to specified beauty and aesthetic services and urges consumers to demand digital receipts
LAHORE: The Punjab Revenue Authority (PRA) has directed aesthetic clinics, spas, beauty salons and beauty parlours across the province to prominently display sales tax guidelines at their cash counters.
According to a PRA spokesperson, the measure aims to increase awareness among businesses and consumers about the Punjab Sales Tax applicable to services provided by these establishments.
The spokesperson said a 5% Punjab Sales Tax applies to services offered by aesthetic clinics, spas, beauty parlours, salons, as well as skin and laser treatment service providers.
Businesses required to register with PRA
Service providers operating in these sectors are required to obtain registration with the Punjab Revenue Authority, the spokesperson said.
Businesses that fail to obtain the required registration may face legal action under the applicable laws.
The PRA has also advised consumers to carefully check the Punjab Sales Tax charged on their bills alongside the actual service charges.
The authority warned that charging customers more than the applicable tax rate is an offence.
Consumers told to demand digital receipts
The PRA spokesperson further advised consumers that temporary or handwritten receipts are not permissible.
Customers should always demand a proper digital receipt when purchasing services from aesthetic clinics, spas, salons and beauty parlours.
Consumers have also been advised to report businesses that refuse to accept card or other digital payments.
According to the spokesperson, complaints can be lodged through the PRA Sahulat App or the authority’s social media platforms.
Tax collected from consumers belongs to government
The PRA clarified that sales tax collected from customers does not constitute business income.
Instead, businesses collect the tax on behalf of the government and are required to deposit it with the government in accordance with the law.
The authority said displaying the guidelines at cash counters would help businesses comply with their tax obligations while enabling consumers to understand their rights and verify the tax charged on services.
The move is part of the PRA’s efforts to improve compliance with Punjab’s sales tax regime and increase transparency in the taxation of services across the province.