Punjab Revenue Authority (PRA) collected Rs. 73.7 billion from July to December 2020 registering a phenomenal growth of 41.6 percent over the Rs. 52.1 billion collected in the first half of the previous financial year, PRA spokesperson said this on Friday.
This performance, she added, was all the more remarkable in view of the unprecedented tax relief package given by the Punjab Government through the Finance Act 2020 wherein the rate of Punjab Sales Tax on Services on more than 25 services was reduced to support COVID-19 affected sectors, boost compliance and encourage documentation.
Punjab government reduced the rate of PSTS (Provincial Sales Tax on Services) from 16 percent to 5 percent for various sectors that were affected by the outbreak of the COVID-19 pandemic including marriage halls and lawns, small hotels, caterers, tour operators, rent-a-car services, photographers, gyms, and manpower recruitment services.
In addition, the rate of PSTS on health insurance, medical consultancy, and hospital charges was reduced to zero percent to cut the cost of healthcare for the public, she maintained.
PRA spokesperson added that the government also reduced the rate of sales tax on restaurants and beauty parlor services from 16 percent to 5 percent in case of payment through credit or debit cards. This widely appreciated move, she said, was aimed at promoting documentation of the economy and had started to pay dividends as the proportion of customers using cards for payment was on the rise.
