Lahore: Punjab restaurant tax on bills paid through cards, mobile wallets and QR codes increased from 5% to 8% on July 1, the Punjab Revenue Authority confirmed.
The revised rate applies to hotel and restaurant payments made through debit cards, credit cards, mobile wallets and QR-based payment systems.
Customers paying restaurant bills in cash or through other non-digital methods will continue to face a 16% sales tax on services.
The Punjab Revenue Authority said the provincial government revised the concessionary digital-payment rate to align it with the 8% rate already applied in other provinces.
Read: Punjab Launches E-Taxi Scheme 2026 With 1,100 Electric Taxis in Lahore
Punjab previously charged 5% on eligible electronic payments, offering a larger tax reduction compared with cash transactions.
The change followed the provincial budget and 2026 sales-tax amendments. Punjab’s official laws register lists the Punjab Sales Tax on Services (Amendment) Act 2026 among legislation enacted during the year.
The clarification followed an Instagram post published on July 6 that claimed the rate had increased to 8%. The post attracted more than 640 likes and 41 comments before the authority confirmed the change.
Restaurants contacted across different cities in Punjab also confirmed that they had started applying the revised rate to eligible digital payments.
