Punjab Imposes 5% Sales Tax On Beauty Services

The Punjab Revenue Authority (PRA) has introduced new guidelines for aesthetic clinics, spas, beauty salons and beauty parlours, directing businesses offering these services to clearly display the instructions at their cash counters.

According to a PRA spokesperson, services offered by aesthetic clinics, spas, beauty parlours and salons, along with skin and laser treatment providers, are subject to Punjab Sales Tax at a rate of 5%.

All businesses falling under these categories are required to register with the Punjab Revenue Authority. Those failing to complete the registration process may face legal action under the applicable law.

The PRA has urged customers to carefully verify the Punjab Sales Tax added to their service bills and cautioned that charging customers above the officially applicable tax rate is an offence.

Consumers have also been instructed to request proper digital receipts for their payments, as temporary or handwritten receipts are not considered valid.

The authority said customers can submit complaints through the PRA Sahulat App or its official social media channels if a business refuses to accept card payments or other forms of digital payment.

The PRA further clarified that sales tax collected from customers is not considered part of a business’s income. Instead, the collected amount must be deposited with the government in accordance with legal requirements.