Lahore: The Punjab government has added the country’s ride-hailing services to the list of services eligible for sales tax under the Punjab Sales Tax on Services Act 2012 – effectively meaning that the tax payable has also declined from 16% to 4% (under the stipulations of Budget 2020-21), a news source reported. Through this measure, the total number of services listed under the tax net in Punjab has risen to 69.
The ride hailing service were previously paying a higher tax amount – under the rent-a-car services category. However, no other tax has been imposed for the Fiscal Year 2020-21 and a number of taxes have been slashed.
Furthermore, the tax rates on a number of services have been reduced from 16% to 5% and in some case have been reduced to zero as well. The government through these measures, not only expects to boost economic activities but also hopes to increase the revenue.
