Amid Coronavirus crisis and lockdown throughout the country, the government of Punjab has made an important decision to exempt taxpayers from paying the tax due to Coronavirus and lockdown for at least 3 months.
In light of the Punjab government’s orders, the PRA granted tax exemption of billions of Rupees to as many as 40 business segments for various services including hotels, motels, wedding halls, catering during the lockdown period.
The business segment of various services registered with Punjab Revenue Authority has been exempted from the sales tax paid on services from 1st April to 30th June. The 16% tax on hotels, construction services, doctors, private hospitals has been abolished for three months.
Due to Coronavirus pandemic, the businesses are closed down to an indefinite period of time, due to the lockdown there are no notable business activities that can earn profits and pay tax to the government. The government has decided to ease the problems of the services sector and offer a 3-months tax-free period to these businesses.
However, the government is currently facing the severe economic consequences, it is estimated that the government might face Rs.2500 billion loss to the economy and millions of unemployed due to lock down phase in the country.