what is pra tax

Question

pra tax has been deducted from my account where as i pay tax in fbr

Answer 1

What is PRA Tax?

PRA Tax is Sales Tax on Services collected by the Punjab Revenue Authority (PRA).
It applies when you provide services in Punjab or receive payments from clients based there.

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⚠️ Why was PRA Tax deducted from your account?

• You likely received payment for services, and the payer (or bank) deducted PRA sales tax (usually 16%) before crediting you.

• This happens even if you're not registered with PRA — based on the location of the client or transaction.

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But you already pay tax to FBR?

• Yes, but FBR and PRA are different authorities:

  • FBR collects income tax and sales tax on goods.

  • PRA collects sales tax on services.

You may end up paying both — PRA tax on services, and income tax to FBR.

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✅ What to do?

• Keep proof of PRA tax deduction (bank slip or invoice).

• It doesn’t replace your FBR income tax but can help support your tax records.

• If you frequently offer services, consider registering with PRA.