Lahore, January 14, 2025 – The Punjab government has intensified its efforts to broaden the tax base by extending initiatives to the district level, aiming to incorporate more taxable services into the formal tax net. This step is part of a broader strategy to enhance revenue collection and ensure equitable compliance.
(more…)Tag: Punjab Revenue Authority
-
PRA Broadens Single Sales Tax Return to Two Sectors
The Punjab Revenue Authority (PRA) has expanded the reach of its single sales tax return (SSTR) system to two additional sectors: the oil and gas sector and the microfinance banking sector. This initiative is part of PRA’s ongoing efforts to streamline tax compliance and facilitate ease of doing business in Punjab.
(more…) -
PRA Collects Record Rs 239 Billion in Tax Revenue
Lahore, July 1, 2024 – The Punjab Revenue Authority (PRA) has achieved a significant milestone by collecting over Rs 239 billion in tax revenue during the Financial Year (FY) 2023-24.
(more…) -
Punjab Government Unveils Taxation Structure for Immovable Property
Islamabad, August 20, 2023 – The Punjab government’s finance division has released a comprehensive report detailing the various types of taxes imposed on immovable property in the province.
(more…) -
Punjab’s Revenue Rally: Real Estate and Unexplored Sectors to Fuel Rs 240 Billion Goal
Lahore, July 23, 2023 — The Punjab Revenue Authority (PRA) is intensifying efforts to meet its ambitious tax collection target of Rs 240 billion for the fiscal year 2023-24 by expanding into unexplored sectors, especially the booming real estate industry.
(more…) -
Foodpanda welcomes PRA tax concession to homechefs
LAHORE: Foodpanda, an online food delivery platform, has welcomed the reduction in sales tax by Punjab Revenue Authority (PRA) to homechefs – people operating from their homes.
In order to create a favorable business environment, the PRA decided to reduce sales tax on services being charged on commissions for home-based chefs.
The rebate reduced sales tax from 16 per cent to 5 per cent, allowing better profitability and growth potential for home chefs operating on online food delivery platforms such as foodpanda.
Home chefs are essentially people operating out of their home kitchens who sell food through online platforms such as foodpanda. The online food delivery company currently has 5,000+ registered home chefs who have been taken on board after stringent routine checks for food hygiene, quality, safety, packaging, etc. The company’s aim is to increase the home chefs base in the next two years and take it up to 100,000 registered home chefs.
Nauman Sikandar, CEO foodpanda, while sharing his thoughts said: “A big thank you to the Punjab Revenue Authority (PRA) from foodpanda and our home chefs. The reduction in sales tax being charged on commissions for home-based chefs comes as a welcome respite.
“This move will help grow a new sector which has significant potential for financial and economic inclusion, specifically women economic empowerment. It would be ideal that other provinces also follow suit and implement the same for home chefs.”
Shahzadi Asghar, a registered home chef at foodpanda, while sharing her gratitude said, “It’s very difficult to do business in today’s situation, that too a home-based business. Thanks to foodpanda and PRA that sales tax is now reduced by 11 per cent which in turn has significantly improved our margins. I am now thinking to expand my food venture with this favorable initiative.”
The visionary step by the Punjab Government must be supported by other provinces as the sector continues to grow exponentially across the country.
-
Single sales tax portal to start functioning by month-end
ISLAMABAD: The single sales tax portal is likely to start functioning by end of October 2021 to facilitate taxpayers falling under all federal and provincial revenue jurisdictions.
In a statement, the Federal Board of Revenue (FBR) said that building further on its ongoing drive for digitization and automation of various processes involved in revenue collection, the FBR had developed “Single Sales Tax Portal” to facilitate the taxpayers and ensure the ease of doing business.
This watershed development of the Single Tax Portal developed by FBR is the outcome of various rounds of negotiations between FBR and the provincial revenue authorities.
The FBR has already offered this portal to the provincial revenue authorities in order to facilitate the taxpayers through one-link facility. The portal is in the final stages of testing and is likely to be launched by the last week of October, 2021.
It is pertinent to mention that till now, Sales Tax registered persons had to file their monthly Sales Tax returns separately to every tax jurisdiction where they conducted business, such as FBR, Sindh Revenue Board, Punjab Revenue Authority, Khyber Pakhtunkhwa Revenue Authority and Balochistan Revenue Authority. Some of the taxpayers had to file returns with revenue authorities of Azad Jammu & Kashmir and Gilgit-Baltistan.
This was a cumbersome task, which often led to complications and disputes over jurisdiction.
Single Sales Tax Portal will also help in simplification of the tax procedures. It will enable the taxpayers to save time and effort, and reduce their compliance costs. By minimizing data entry, it also addresses the issues of data and calculation errors.
The system will automatically apportion input tax adjustment as well as tax payments across the sales tax authorities. Through this system, officers of all revenue authorities will be able to make better informed decisions about matters related to Sales Tax.
The single portal system is a significant milestone towards taxpayers’ facilitation and a big leap forward towards harmonization of taxes between the Federal Government and the provinces.
-
Sales tax on services exempted on construction services
LAHORE: Punjab Revenue Authority (PRA) has exempted the sales tax on services rendered by construction industry till June 30, 2020.
The provincial authority issued a notification dated April 02, 2020 and allowed zero percent sales tax on services provided by construction sector for next three months.
However, this exemption from tax is available with condition that no input tax adjustment will be granted.
Previously, the industry was allowed reduced rate of five percent and one percent without input tax credit/adjustment in respect of government civil works and sixteen percent with input tax credit/adjustment for others.
The tax is payable within the provincial jurisdiction by construction services and services provided by contractors of building (including water supply, gas supply and sanitary works), roads and bridges, electrical and mechanical works (including air conditioning), horticultural works, multi-discipline works (including turn-key projects) and similar other works but, excluding:
(i) where the tax is otherwise paid by registered persons as property developers, builders or promoters for building construction; or
(ii) where the construction work is funded under an agreement of foreign grant-in-aid or involves construction of consular buildings; or
(iii) residential construction projects where the covered area does not exceed 10,000 square feet for a house and 20,000 square feet for an apartment except where construction services are provided to construct more than one house or more than one apartment building.
Explanation- Notwithstanding the rate of five percent fixed in column 4, the following further reduced rates shall be applicable:
(a) one per cent for all services specified at S.No.14 without input tax credit or adjustment to the extent of Government civil works including those of cantonment boards involved in the ongoing development schemes and projects launched during Financial Year 2016-17 and funded under the Annual Development Plan of the Punjab Government or funded through foreign loans where the negotiations were finalized after 1st of July 2016 or funded under Public Sector Development Program of the Federal Government or funded by the Cantonment Boards; and
(b) zero per cent for all services specified at S.No.14 without input tax credit/adjustment to the extent of Government civil works including those of cantonment boards involved in the ongoing development schemes and projects launched prior to Financial Year 2016-2017 and funded under the Annual Development Plan of the Punjab Government or funded through foreign loans where the negotiations were finalized as on 1st of July 2016 or funded under Public Sector Development Program of the Federal Government or funded by Cantonment Boards.
-
Punjab Tax Relief Package: Many sectors granted exemption till June 30
LAHORE: The government of Punjab has granted exemption from sales tax on services to many sectors in order to dilute effects of coronavirus.
The provincial government announced tax relief package to fight COVID-19 through a notification issued on April 02, 2020.
According to a notification issued by Punjab Revenue Authority (PRA) the tax exemption has been granted through amendments brought into the Second Schedule to the Punjab Sales Tax on Services Act, 2012.
The PRA said that zero percent without input tax adjustment has been allowed to hotels, motels and guest houses. However, this exemption has been granted to non-corporate, non-franchise and non-chain business. Meanwhile, 16 percent sales tax on service shall remained applicable for others.
The zero percent tax without input tax adjustment has also been allowed to:
Marriage halls and lawns (by whatever name called) including pandal and shamiana services.
Catering services (including all ancillary / allied services such as floral or other decoration, furnishing of space whether or not involving rental or equipment and accessories).
However, 16 percent sales tax on services shall applicable on clubs including race clubs and their membership services including services, facilities or advantages, for a subscription or any other amount to their member.
For life insurance and health insurance businesses, the PRA announced zero percent without input tax adjustment. While, sixteen percent of gross minimum paid shall be applicable for other insurance services.
Zero percent tax without input tax adjustment has been granted to services provided by digital platform. But the rate of 16 percent shall remain applicable for others.
The following services have been allowed zero percent sales tax on services without input tax adjustment under serial number of Second Schedule:
14. Construction services and services provided by contractors of building (including water supply, gas supply and sanitary works), roads and bridges, electrical and mechanical works (including air conditioning), horticultural works, multi-discipline works (including turn-key projects) and similar other works
18. Services provided for personal care by beauty parlors, salons, clinics, slimming clinics, spas (including saunas, Turkish baths and Jacuzzi) and similar other establishments
24. Services provided by other consultants (by whatever name called or treated, whether as consultant or otherwise) including human resource and personnel development services, exhibition or convention services[including provision of space, equipment, accessories and other allied services], event management services (whole range and variety of their services regardless of separate or individual classification thereof), valuation services, evaluation services (including competency and eligibility testing services), certification, verification and equivalence services, market research services, marketing or sales services (including marketing agencies and on line marketing or sales services), surveyors services, training or coaching services (other than general education services) and credit rating services.]
25. Services provided by tour operators[and travel agents including all their allied services or facilities] (other than Hajj and Umrah).
32. Services provided by property dealers[and realtors].
35. Services provided in respect of rent-a-car[(including renting of all categories of vehicles meant for transportation of persons)
36. Services provided by car/automobile dealers
43. Services provided in specified fields such as health care, gym, physical fitness, indoor sports, games,[amusement parks, arcades and other recreation facilities,]and body or sauna massage etc.
44. Services provided by laundries and dry cleaners
45. Services provided by cable TV operators.
66. Services in respect of treatment of textile, leather but not limited to Dyeing services, Edging and cutting, cloth treating, water proofing, Embroidery, Engraving, Fabric bleaching, Knitting, Leather staining, Leather working, Pre-shrinking, Color separation services, pattern printing and shoe making services.
67. Apartment house management, real estate management and services of rent collection.
68. (i) Medical consultation/ visit fee exceeding Rs.1,500per consultation/ visit of doctors, medical practitioners and medical specialists.(ii) Bed/ room charges of hospitals exceeding Rs.6,000/-per day per bed / room.
The PRA said that the notification shall remain effective for a period from its publication till June 06, 2020 (both days inclusive) and on and from July 01, 2020, the amendments shall cease to have effect and the position obtaining prior to this notification shall stand restored.
-
Commissioner (Appeals) barred from issuing adverse orders
LAHORE: Punjab Revenue Authority (PRA) has barred commissioner appeals from issuing any adverse order against taxpayers, who failed to appear due to lockdown for prevention of coronavirus.
The PRA in an office order dated March 25, 2020 said that in view of the prevailing circumstances in the wake of coronavirus spread, no adverse orders may be passed due to non-appearance of any party, lawyer or authorized representatives, as the case may be, fixed for hearing before the Commissioner (Appeals), Punjab Revenue Authority with immediate effect and till further orders.
In another office order, the PRA said that in order to facilitate the taxpayers, lawyers, chartered accountants and tax consultants/authorized representatives because of the closure of office due to coronavirus outbreak, it has been urged upon the taxpayers to file their appeals before the Commissioner (Appeals), Punjab Revenue Authority electronically.
For this purpose, the taxpayers may submit their appeals through emails at [email protected]
The taxpayers have also been advised that the appeals may be filed/sent through courier or mail as well.