Punjab raises vehicle token tax, revises sales tax rates in major reform
Key takeaways
- According to official details, the token tax on commercial and large vehicles above 1,000cc has been increased, marking the first major revision in two decades.
- Under the new measures, sales tax on various services has been increased from 5 percent to 8 percent, while hotels will now pay 8 percent sales tax on payments made via credit or debit cards.
- The provincial government has also abolished the “cotton fee” on raw cotton, while offering relief measures for new businesses, which will be exempted from tax regulations for the first six months of operation.
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Add ARY News on Google AAResize LAHORE: The Punjab government has announced a wide-ranging tax reform package, including a major increase in vehicle token tax after 20 years, along with revisions in sales tax rates and enforcement measures across multiple sectors, ARY News reported.
According to official details, the token tax on commercial and large vehicles above 1,000cc has been increased, marking the first major revision in two decades. The move is part of broader efforts to update the province’s taxation structure in line with current economic conditions.
Under the new measures, sales tax on various services has been increased from 5 percent to 8 percent, while hotels will now pay 8 percent sales tax on payments made via credit or debit cards. Foreign exchange companies and money changers will also be subject to a newly imposed 3 percent tax on services.