Punjab govt amends Sales Tax on Services Act 2012

Punjab Governor Sardar Saleem Haider approved the amendments in the Sales Tax on Services Act 2012 in the first schedule, reported 24NewsHD TV channel on Sunday.

After these amendments, special transport services are exempted from taxes. Prior to this, tax was imposed on “Passenger Transport Services”.

Now, after the amendments, the services which are mentioned in the second schedule of part three at serial no. three will be exempted from the taxes.

After amendments, all passenger transport services will be liable to pay taxes.

A new definition has been added in place of the old text in No. 4 of the First Schedule. This move by the Finance Department aims to ensure clarity and legal consistency.

The previous law did not include the provision of property through leases and licenses. Now, “immovable Property” lease and other accords will also be brought under the tax net.

The amendments came into effect immediately. The main purpose of these amendments is to bring more transparency to the tax net.

Reporter: Kaleem Akhtar