PRA Tax Calculator – Punjab Sales Tax on Services
What is PRA Tax?
PRA tax refers to the Punjab Sales Tax on Services collected by the Punjab Revenue Authority (PRA) under the Punjab Sales Tax on Services Act, 2012. This tax applies to specific services provided or rendered within the province of Punjab.
If you are a service provider operating in Punjab, you may be required to:
- Register with PRA
- Charge sales tax on services
- Deposit PRA tax
- File monthly PRA sales tax returns
PRA tax is different from federal sales tax (see our GST calculator Pakistan), which applies to goods rather than services.
Our PRA Tax Calculator helps you work out the exact tax amount according to the latest notified PRA tax rates.
What Does PRA Stand For?
PRA stands for Punjab Revenue Authority. It is the provincial authority responsible for:
- Levying sales tax on services in Punjab
- Registering service providers
- Collecting and administering PRA sales tax
- Facilitating online tax filing and verification
PRA Sales Tax on Services – Overview
Under PRA law, sales tax is not charged on goods, but on services listed in the Second Schedule of the Punjab Sales Tax on Services Act. Each service category has a specific tax rate, such as:
- 16% standard rate
- 8%, 5% and 3% reduced rates (without input tax adjustment)
- 19.5% for telecommunication services
- Fixed-rate services (in specific cases)
These rates vary based on:
- Nature of service
- Mode of payment
- Type of service provider
PRA Tax Rates in Punjab (Common Examples)
Below are some commonly used PRA tax rates applied to services in Punjab:
- Marriage halls & lawns: 8% (without input tax adjustment)
- Hotels, motels & guest houses:
- 8% for card / QR payments and small non-chain hotels (under 20 rooms)
- 16% for others
- Advertising services: 16%
- Consultancy & professional services: 16%
- IT & software services: software development 0% (zero-rated); IT-enabled services 5%
- Restaurants:
- 8% when paid by card, wallet or QR scan (was 5% until June 2026)
- 16% for cash payments
- Construction: Rs. 100 per sq. yard (land development), Rs. 50 per sq. ft (building)
Businesses may also be subject to federal income tax withholding on services, which you can estimate using our withholding tax calculator.
How the PRA Tax Calculator Works
Using our PRA tax calculator is simple:
- Select the relevant service type (the PRA rate is shown with each service)
- Enter the value of the taxable service, or the quantity for fixed-rate services
- Choose whether the amount is excluding or including tax
- The calculator automatically computes:
- PRA sales tax amount
- Total payable amount
This helps businesses, freelancers and consultants avoid manual calculation errors.
Example of PRA Tax Calculation
Suppose you provided a service worth PKR 100,000 subject to 16% PRA tax.
- Service value: PKR 100,000
- PRA tax @16%: PKR 16,000
- Total payable amount: PKR 116,000
If the same customer paid a restaurant bill of PKR 100,000 by card or QR, PRA tax at 8% would be only PKR 8,000. Our calculator shows this instantly.
Who Should Use the PRA Tax Calculator?
This tool is useful for:
- Service providers in Punjab
- Freelancers offering taxable services
- Consultants and professionals
- Advertising agencies
- IT & software companies
- Restaurants and event businesses
If you issue PRA invoices or file PRA returns, this calculator saves time and ensures accuracy. Salaried individuals can calculate their income tax with our salary tax calculator Pakistan.
PRA Sales Tax Return Filing (Brief Overview)
Registered PRA taxpayers are required to:
- File monthly sales tax returns
- Declare taxable services
- Deposit tax within due dates
Accurate tax calculation is the first step before filing a PRA sales tax return. Chinnar Business Advisors can handle PRA registration and monthly returns for you.
Disclaimer
This calculator is for informational purposes only. For legal interpretation or return filing, consult a qualified tax professional or PRA guidelines.
Calculate Your PRA Tax