Since 1 July 2026, restaurants in Punjab charge sales tax at two rates depending on how the guest pays: 16% for cash, and 8% for card and other digital payments. Before that, the digital rate was 5%; the change raised it to 8% while keeping it at half the cash rate, to push more payments onto digital channels.
For a restaurant, that means the same order now has two possible totals. Here's what that looks like, and how to keep it straight.
This is a practical guide, not tax advice. Rates and rules change, and your own position may differ; confirm with your tax adviser or the Punjab Revenue Authority.
The same order, two totals
Take a table that orders Rs 2,610 of food and drinks, with menu prices shown before tax:
| Paid by card or digital | Paid in cash | |
|---|---|---|
| Subtotal (excl. tax) | Rs 2,610 | Rs 2,610 |
| Sales tax | Rs 209 (8%) | Rs 418 (16%) |
| Total | Rs 2,819 | Rs 3,028 |
On a busy night that difference adds up for your guests, and it's a good reason to tell them: paying by card, JazzCash or Raast is cheaper.
Showing it on your menu
Most Pakistani menus list prices before tax, with a line such as "sales tax will be applied, all prices are exclusive of tax". That still works with two rates; just be clear about it:
- "All prices exclude sales tax: 8% for card and digital payments, 16% for cash."
If your menu prices already include tax, the two rates mean a cash guest and a card guest should pay different totals for the same dish. That's harder to explain at the table, which is one reason most restaurants keep menu prices tax-exclusive.
Showing it on the bill
Guests in Pakistan are used to a bill that ends like this:
- Subtotal (excl. sales tax)
- Sales tax, with the rate
- Total (incl. sales tax), and sometimes how it was paid
Whatever system prints or shows your bills should do the same, at the rate that matches how the guest paid.
Where QR ordering fits
The two rates are easy to get wrong when a waiter adds up the bill by hand, or when a system only knows one tax rate. With QR ordering:
- An order paid from the table (Raast, JazzCash or card) is priced at the digital rate.
- An order paid in cash at the counter is priced at the cash rate.
- The guest's basket shows the subtotal, the sales tax line and the total before they order, so nobody is surprised at the counter.
In Café QR you set both rates yourself in Settings, along with whether your menu prices include tax. If the rates change again, it's a change in your settings, not a wait for a software update.
Your PRA bill stays where it is
Restaurants above the Punjab Revenue Authority's threshold must issue bills through its e-invoicing system, with a QR code the guest can verify. A QR ordering system doesn't replace that: it takes the order and sends it to your kitchen, and your PRA-connected till still prints the official bill.
In short
- Cash: 16%. Card and digital, including Raast: 8%. In force since 1 July 2026.
- Keep menu prices tax-exclusive and say which rate applies to which payment.
- Show the tax as its own line on every bill.
- Let your system apply the right rate for how the guest pays.
Running a restaurant in Lahore? See QR ordering for Lahore restaurants, or get set up with Punjab's rates already built in.