# Professional tax in Punjab: who pays, slabs and how to pay online

URL: https://which.pk/business/guides/professional-tax-punjab/
Author: Ahtisham
Updated: 18 Oct 2026

## Summary

Professional tax in Punjab is a yearly tax collected by the provincial excise department under the Punjab Finance Act 1977. Anyone in a profession, trade or job who was assessed to income tax the year before pays Rs 200. Companies pay Rs 10,000 to Rs 1 lakh by paid-up capital, and trades pay fixed amounts, such as Rs 1,000 for lawyers. The tax year runs from 1 July, the statement is due before 31 August, and you can pay through an ePay Punjab PSID.

## Key facts

- Income tax payers: Rs 200 a year
- Companies: Rs 10,000 to Rs 1 lakh
- Statement due: Before 31 August
- Pay through: ePay Punjab (PSID)

Professional tax in Punjab is a yearly provincial tax on anyone who runs a business, practises a profession or works in Punjab. If you were assessed to income tax last year, you pay **Rs 200 a year**. Companies pay **Rs 10,000 to Rs 1 lakh** by paid-up capital, and trades like property dealers or doctors pay a fixed amount. Your statement is due **before 31 August**, and you can pay through ePay Punjab. These rates come from the excise department's **undated** rate table, read on 18 October 2026.

The tax is charged under the Punjab Finance Act 1977 and the Punjab Professions and Trade Tax Rules 1977, and collected by the Excise, Taxation & Narcotics Control Department.

**Most individuals who pay income tax:** Rs 200 a year (Excise department rate for anyone in a profession, trade, calling or job in Punjab who was assessed to income tax in the previous financial year)

## Who pays professional tax in Punjab?

Anyone "engaged in a profession, trade, calling or employment" in Punjab can be liable. The department works out the tax on a different basis for each group:

| Who | Taxed on |
|---|---|
| Companies | Paid-up capital |
| Factories | Number of employees |
| Commercial establishments (not retailers or wholesalers) | Number of employees |
| Importers and exporters | Value of goods imported or exported |
| Government contractors and property developers | Value of contracts or services |
| Doctors, lawyers, dealers and other listed services | Fixed amount |

If you do more than one job or trade, you pay only once, for the one with the **highest rate** (section 3(2) of the Act).

You may have seen professional tax on your car bill. The excise department adds **Rs 200 professional tax** to every car and motorcycle row in its token tax table. See [token tax in Punjab](/money/guides/token-tax-punjab/).

## What are the professional tax slabs in Punjab?

These are the yearly rates on the excise department's professional tax page, read on 18 October 2026. The page shows no effective date. The only amendments it mentions are from 1999 and 2000, and on 18 October 2026 the Punjab Code website timed out, so we couldn't check the Act's latest schedule. Before you pay, confirm the amount on your challan or with your district excise office. Dawn's list of tax measures in the 2026-27 Punjab budget (17 June 2026) didn't include professional tax.

### Companies, by paid-up capital

| Paid-up capital | Tax a year |
|---|---|
| Up to Rs 5 million | Rs 10,000 |
| Rs 5 million to Rs 50 million | Rs 30,000 |
| Rs 50 million to Rs 100 million | Rs 70,000 |
| Above Rs 100 million | Rs 1 lakh |

If you're setting up a company, see [how to register a company in Pakistan](/business/guides/how-to-register-a-company-in-pakistan/).

### Factories, shops and importers

| Who | Tax a year |
|---|---|
| Factory (not a company), up to 10 employees | Rs 1,500 |
| Factory, 11 to 25 employees | Rs 5,000 |
| Factory, more than 25 employees | Rs 7,500 |
| Commercial establishment with 10+ employees, in a Metropolitan or Municipal Corporation | Rs 6,000 |
| Commercial establishment with 10+ employees, elsewhere | Rs 4,000 |
| Other commercial establishments (not retailers or wholesalers) | Rs 2,000 |
| Importer or exporter, Rs 1 lakh to Rs 1 million of goods last year | Rs 2,000 |
| Importer or exporter, Rs 1 million to Rs 5 million | Rs 3,000 |
| Importer or exporter, above Rs 5 million | Rs 5,000 |

Importers and exporters also need other registrations. See [import and export licence in Pakistan](/business/guides/import-export-licence-pakistan/).

### Contractors and builders

This applies to contractors, builders and property developers who supplied goods or services to the government, a company, a factory, a commercial establishment or a local authority in the previous year.

| Value supplied last year | Tax a year |
|---|---|
| Up to Rs 1 million | Rs 1,000 |
| Rs 1 million to Rs 10 million | Rs 6,000 |
| Rs 10 million to Rs 50 million | Rs 10,000 |
| Above Rs 50 million | Rs 20,000 |

### Professions and trades

"City" below means within Metropolitan or Municipal Corporation limits.

| Profession or trade | City | Elsewhere |
|---|---|---|
| Medical consultants, specialists, dental surgeons | Rs 5,000 | Rs 5,000 |
| Registered medical practitioners | Rs 4,000 | Rs 4,000 |
| Auditing firms (per qualified professional) | Rs 6,000 | Rs 4,000 |
| Management and tax consultants, architects, engineering and technical consultants | Rs 6,000 | Rs 2,000 |
| Lawyers | Rs 1,000 | Rs 1,000 |
| Members of stock exchanges | Rs 10,000 | Rs 10,000 |
| Money changers | Rs 6,000 | Rs 2,000 |
| Motorcycle and scooter dealers | Rs 10,000 | Rs 6,000 |
| Car dealers and real estate agents | Rs 20,000 | Rs 10,000 |
| Recruiting agents | Rs 20,000 | Rs 10,000 |
| Goods and passenger transport by road | Rs 4,000 | Rs 2,000 |
| Health clubs and gyms | Rs 4,000 | Rs 2,000 |
| Jewellers, department stores, electronics stores, cable operators, printing presses, pesticide dealers | Rs 2,000 | Rs 2,000 |
| Tobacco wholesalers | Rs 4,000 | Rs 4,000 |
| Franchisees, authorised dealers, agents and distributors | Rs 5,000 | Rs 5,000 |
| Hotels, guest houses, motels and resorts | Rs 5,000 | Rs 5,000 |
| Air-conditioned restaurants, bakeries and sweet shops | Rs 5,000 | Rs 5,000 |
| Property developers, builders and their marketing companies | Rs 50,000 | Rs 50,000 |

The table's row for homeopaths, hakeems and ayurvedics is laid out unclearly on the department's page, so we've left it out. Ask your district excise office for that rate.

## What is the due date for professional tax?

The tax year runs from **1 July to 30 June**. Before **31 August** each year, you must give the District Excise and Taxation Officer a statement with your name, address and the nature of your profession, trade or job.

If you close the business or stop the work, tell the District Excise and Taxation Officer **within 30 days**, so the demand against you is removed (section 10 of the Rules).

## How do I pay professional tax online in Punjab?

**ePay Punjab** is the Punjab government's payment app, built by the Punjab Information Technology Board. Professional tax is one of the excise services it lists. It gives you a **17-digit PSID**, which you pay by internet banking, ATM or at a bank counter.

On 18 October 2026 the ePay Punjab website didn't open for us, so we couldn't check its professional tax calculator.

### Registering at the excise office instead

You can also enrol at your district office. The ETO (Excise and Taxation Officer) for professional tax gives you a demand or enrolment number **on the same day**:

1. Give basic information about your business and the date it started, or its registration date with any authority.
2. The ETO issues a payment challan (PFT-2) on form 32-A.
3. Pay it at any NBP or SBP branch in Punjab.
4. Give a copy of the paid challan to the ETO.

## How do I get a professional tax clearance certificate?

Apply to the Excise and Taxation office with:

- an application from the owner on plain paper
- a copy of your CNIC
- proof that your professional tax is paid up to date

## What happens if I don't pay?

The department finds businesses through inspectors' field visits and lists such as SECP's register of companies and chamber of commerce member lists. It then sends notices:

1. **First notice:** asks for documents such as your office opening date, incorporation certificate, paid-up capital, import and export values, number of employees, income tax returns and past professional tax receipts.
2. **Second notice:** a reminder.
3. **Third notice:** your last chance to be heard.

If you don't respond, the District Excise and Taxation Officer can decide your case **ex parte at the maximum rate with a 100% penalty** (rule 4(2)). A demand notice follows with at least 30 days to pay. After that, the tax is recovered as land revenue, which can lead to attachment of property or an arrest warrant under the Punjab Land Revenue Act 1967.

**Recovery drive in 2026:** In June 2026 Daily Pakistan reported that the excise department told field officers to tighten recovery of professional tax and excise duty across the province.

If you disagree with an assessment, you can appeal to the Director Excise & Taxation **within 30 days** (rule 4(3)).

## Is professional tax the same as income tax or sales tax?

No. Professional tax is a small provincial tax collected by the Punjab excise department. Income tax is federal and goes to FBR: see [how to become a filer](/business/guides/how-to-become-filer/). Sales tax on services in Punjab goes to the Punjab Revenue Authority: see [sales tax registration](/business/guides/sales-tax-registration/).

The excise department's head office is at Transport House, 11-A Egerton Road, Lahore (042-9920 3848).

**More guides:** [Tax & Registration](/business/tax-registration/) · [Partnership firm registration in Punjab](/business/guides/partnership-firm-registration-punjab/) · [How to register a sole proprietorship](/business/guides/how-to-register-sole-proprietorship/) · [How to get an NTN](/business/guides/how-to-get-ntn/) · [Token tax in Punjab](/money/guides/token-tax-punjab/) · [Business](/business/)

## Questions people ask

### What is the professional tax slab in Punjab?

It depends on who you are. Anyone assessed to income tax the year before pays Rs 200 a year. Companies pay Rs 10,000 to Rs 1 lakh by paid-up capital, and listed trades and professions pay fixed amounts from Rs 1,000 to Rs 50,000, according to the excise department's undated rate table (read 18 Oct 2026).

### What is the due date for professional tax in Punjab?

The tax year runs from 1 July to 30 June. You must give the District Excise and Taxation Officer a statement of your name, address and profession before 31 August each year.

### How do I pay professional tax online in Punjab?

Generate a PSID through ePay Punjab and pay it by internet banking, ATM or at a bank counter. The excise department's self-assessment form also prints a deposit slip that you can pay on ePay or at an NBP or SBP branch.

### How do I get a professional tax clearance certificate?

Apply to the Excise and Taxation office on plain paper with a copy of your CNIC and proof that your professional tax is paid up to date.

### Do I pay professional tax twice if I have two businesses?

No. If you are in more than one profession or trade, you pay only for the one with the highest rate, under section 3(2) of the Punjab Finance Act 1977.

## Sources

- [Professional Tax](https://excise.punjab.gov.pk/professional_tax), Excise, Taxation & Narcotics Control Department, Punjab (accessed 18 Oct 2026)
- [Motor Vehicle Tax: rates of token tax, income tax and professional tax](https://excise.punjab.gov.pk/motorvehicle_tax), Excise, Taxation & Narcotics Control Department, Punjab (accessed 18 Oct 2026)
- [ePay Punjab (App Store listing)](https://apps.apple.com/app/id1465068821), Punjab Information Technology Board (accessed 18 Oct 2026)
- [Punjab Budget 2026-27: Punjab plans to collect 42 per cent more tax in next fiscal year](https://www.dawn.com/news/2008417), Dawn (accessed 18 Oct 2026)
- [Bad news for token tax defaulters as Excise warns of 100pc penalty surcharge, car seizures](https://en.dailypakistan.com.pk/02-Jun-2026/bad-news-for-token-tax-defaulters-as-excise-warns-of-100pc-penalty-surcharge-car-seizures), Daily Pakistan (accessed 18 Oct 2026)