PRA E-Invoice System for Punjab Hotels
The Punjab Revenue Authority (PRA) has asked all hotels and restaurants in the province to install the PRA e-invoice system, known as EIMS, so that taxes are paid on time, Dawn reported.
The demand came at a meeting with the Hotels and Restaurant Association in Lahore on Friday. The meeting discussed the installation of EIMS in the hotel industry and tax compliance.
The meeting focused on measures to bring the entire hotel industry into the tax net and further broaden the tax base. The participants reviewed the EIMS installation process, technical requirements and the challenges faced by hotels in implementing the system.
The association office-bearers assured the PRA of their full cooperation in initiatives aimed at improving the tax system and promoting digitalisation.
Receipts are a legal requirement
PRA Chairperson Moazzam Iqbal Sipra emphasised that issuing proper computerised receipts to customers against services provided was a legal requirement.
He stated that with the cooperation of the business community, the tax system could be made simpler, more transparent and efficient. He added that expanding the tax net would encourage business activities and promote a culture of tax compliance.
The chairperson also warned that business operators involved in fraudulent practices in the issuance of electronic receipts would be closely monitored and subjected to heavy penalties.
The Business Recorder reported that the PRA has directed hotel owners across the province to complete 100 per cent installation of EIMS by the end of this month. Businesses issuing fake electronic receipts will face strict action and heavy penalties, the report said.
The crackdown that came first
The push for EIMS is not new. In August, the PRA banned handwritten and manual receipts at hotels, restaurants, coffee shops and marriage halls across Punjab, as part of measures to curb alleged tax evasion.
Under that notification, hotels, restaurants, coffee shops and marriage halls must issue receipts through EIMS. Businesses that fail to do so can face fines ranging from Rs400,000 to Rs1 million. Establishments that repeatedly violate the rules may also be sealed for up to one month.
The PRA also prohibited businesses from issuing kitchen order slips, unpaid bills or similar documents as substitutes for proper tax receipts. Every receipt must carry the business name, address, receipt number and a PRA QR code.
The August crackdown closed a gap that had let sales go unrecorded. Every sale through EIMS is recorded electronically, which makes it harder to understate turnover and easier for the authority to check what a business actually earned.
PRA e-invoice system: what it means for diners
For customers, the change is simple. Every bill at a hotel or restaurant should now come as a computerised receipt with a PRA QR code. Diners can check the code to confirm the sale has been recorded with the tax authority.
For businesses, the system adds a compliance step to every transaction. Hotels and restaurants that have not yet installed EIMS face a deadline at the end of this month, and the PRA has warned that fake receipts will draw strict action.
The wider tax picture remains tough. Small exporters have been pressing for better trade finance, and a debate over tariff cuts is under way as industry warns that high duties hurt competitiveness. The Economic Coordination Committee has also been weighing deregulation in other sectors.
Frequently asked questions
What is EIMS?
EIMS is the electronic invoice monitoring system used by the Punjab Revenue Authority. Hotels, restaurants, coffee shops and marriage halls must issue receipts through it so that sales are recorded electronically.
What has the PRA asked hotels to do?
The PRA has asked all hotels and restaurants to install EIMS, and directed owners to complete 100 per cent installation by the end of this month.
What happens if a business does not comply?
Businesses that fail to issue EIMS receipts can face fines from Rs400,000 to Rs1 million. Repeat offenders may have their premises sealed for up to one month. Fake electronic receipts will draw strict action and heavy penalties.
What must a proper receipt show?
A proper receipt must carry the business name, address, receipt number and a PRA QR code. Kitchen order slips and unpaid bills cannot be issued instead of a proper tax receipt.
