13/07/2026
MYTH: Punjab is giving restaurants a 50% tax relief on card payments.
REALITY: The tax rate on credit card, debit card, and digital wallet payments at restaurants rose from 5% to 8%, effective 1 July 2026. The 50% figure compares the new 8% rate to the 16% cash rate, not to what card payments were taxed before. For anyone already paying by card, this is an increase, not a discount. Cash remains the more expensive option at 16%, so digital payments are still cheaper at checkout, but framing a rate hike as relief leaves out the part that affects cardholders directly.
ACE Solicitor's Kith advises restaurants and food service businesses on Sales Tax on Services compliance across Punjab. One Roof Legal Services for Income Tax, Sales Tax, Corporate Compliance, SECP, and Trademark matters. WhatsApp +92 310 4909990 or acesolicitorskith.com.