Why PRA Is Seizing Sales Records from Restaurants and Event Halls
LAHORE, November 2025 — The Punjab Revenue Authority (PRA) has stepped up its province-wide crackdown on tax evasion, carrying out surprise inspections and seizing sales records from several restaurants, cafés, and marquees in major cities including Lahore, Rawalpindi, Sargodha, Bahawalpur, and Vehari.
Why the Action Was Taken
According to PRA officials, the enforcement teams acted after finding irregularities in sales and tax records. In many cases, businesses were reportedly charging sales tax from customers but not depositing it in the government’s account — a violation of provincial tax laws. Officials stated that records have been taken into custody for detailed examination to verify whether collected taxes were properly declared and submitted.
Strict Enforcement Underway
According to a PRA spokesperson, businesses that are found operating outside the official Electronic Invoice Monitoring System will have their access to the system suspended. Companies involved in false reporting or concealment of actual sales may face penalties and legal action.
“Charging customers for sales tax but not depositing it with the government is a serious and punishable offence under PRA laws,” the spokesperson warned. He added that the authority has already imposed heavy fines on several violators, with more inspections planned in the coming weeks.
Focus on Transparency and Digital Monitoring
The PRA emphasized that in addition to punishing, its goal is to promote fair taxation and transparency. In order for the authority to track tax collection in real time, businesses that are registered under the e-IMS system must issue computerized invoices for each sale.
According to officials, the PRA wants to extend the use of e-IMS in all service sectors, including lodging facilities, dining establishments, and event spaces, to reduce manual reporting errors and prevent tax leaks.
What Companies Should Do:
• Tax professionals would agree that each and every sale should be duly recorded on PRA’s e-IMS system.
• Deposit collected sales tax within the prescribed time limits.
• Avoid manual invoicing as it is prone to discrepancies.
• Keep records electronically that can be viewed at any time.
Penalties for non-compliance could include suspension of business registration, significant fines, and possible legal action.
LDA Urban Development Update
In a related development, the Lahore Development Authority has started remodeling key traffic junctions across the city to ease congestion. Director General Tahir Farooq visited Railway Station Chowk, Misri Shah, Azadi Chowk, and Lorry Adda along with the engineering teams and reviewed the design proposals regarding the smooth flow of traffic and road safety.
Final Thoughts
The latest move by the PRA essentially means that in 2025, the government will be putting more emphasis on digital tax monitoring and enforcement mechanisms. Integrating data-driven audits with on-ground inspections, the authority will now work on ensuring better tax transparency, a reduction in evasion, and the development of a more responsible business environment within the province.
If properly implemented, the campaign could raise considerable revenue while encouraging fair competition among compliant businesses.