The Punjab Revenue Authority has launched a crackdown on restaurants and food chains that were charging sales tax from customers but issuing fake tax receipts or failing to record those sales properly. The action was taken in several major cities of the province and has resulted in fines and notices for a number of food businesses.
According to a PRA spokesperson, several restaurants were found adding tax to customer bills but not showing those transactions in their official tax records. This means that money paid by customers as tax was not reaching the government treasury, which the authority described as a serious violation of the law.
The operations were carried out in Lahore, Faisalabad, Sargodha and Multan following public complaints and vigilance reports. PRA teams visited multiple outlets, checked their billing systems and compared the receipts given to customers with the sales data being reported to the authority.
PRA Fines Food Outlets and Issues Notices
The authority imposed fines on several food outlets for issuing fake receipts and irregular bills. It also issued notices to businesses that were not using the Electronic Invoice Monitoring System, commonly known as E-IMS, which is designed to record every sale in real time and share the data with the PRA.
Restaurants and food chains have been directed to issue correct tax receipts and maintain complete records of all their transactions. The PRA spokesperson said that any misappropriation of tax collected from consumers will not be tolerated and that strict action will continue against violators across Punjab.
According to PRA rules, food business operators recording monthly sales of up to Rs. 500,000 are required to issue receipts through the E-IMS system. Each valid receipt carries a unique invoice number and a QR code that can be verified by customers, which makes it much harder for businesses to hide their sales.
The crackdown is part of the authority’s broader effort to improve tax compliance in the services sector, which includes restaurants, cafes, bakeries, caterers and marriage halls. Sales tax on services is a major source of revenue for the Punjab government and helps fund development and public welfare projects in the province.
Tax officials say that fake receipts not only cause revenue losses but also create unfair competition, as honest businesses that pay their full taxes end up at a disadvantage compared with those that hide their sales.
How Customers Can Check Their Restaurant Bills
Customers can play an important role in stopping tax fraud. Whenever tax is charged on a restaurant bill, diners should ask for a proper PRA-integrated receipt with a valid invoice number and QR code. Scanning the QR code or checking the invoice number through the PRA’s official verification service can confirm whether the sale has been reported.
If a restaurant refuses to give a proper receipt or issues a bill that cannot be verified, customers can file a complaint with the Punjab Revenue Authority through its official helpline or website. The PRA has also run reward schemes in the past to encourage citizens to verify their receipts. With inspections now underway in several cities, restaurants that continue to issue fake bills may face heavier penalties and even sealing of their premises in the coming weeks.
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