PRA to give home chefs relief in sales tax

LAHORE: The Punjab Revenue Authority (PRA) has decided to provide reduction in sales tax being charged on commissions for home-based chefs in order to create a favourable business environment.

The rebate reduces sales tax from 16 percent to 5 percent allowing better profitability and growth potential for home chefs operating on online food delivery platforms. Currently there several thousand registered home chefs who have been taken on-board after stringent routine checks for food hygiene, quality, safety, packaging, on different online platforms. The trend is growing and it is expected that home chefs will increase to 100,000 in next two years. Chairman Punjab Revenue Authority Zainulabidin Sahi said that the step by the Punjab government will support home-based entrepreneurs and drive economic viability for a large segment of the society.

The visionary step by the Punjab government must be supported by other provinces as the sector continues to grow exponentially across the country. CEO Foodpanda Nauman Sikandar while sharing his thoughts said that the initiative by the Punjab government is in-line with our vision of creating favourable business environment for home chefs as they represent a major segment of our portfolio. This move will help grow a new sector which has significant potential for financial and economic inclusion, specifically women economic empowerment.