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

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.

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:

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.

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

If you’re setting up a company, see how to register a company in Pakistan.

Factories, shops and importers

Importers and exporters also need other registrations. See import and export licence in 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.

Professions and trades

“City” below means within Metropolitan or Municipal Corporation limits.

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.

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. Sales tax on services in Punjab goes to the Punjab Revenue Authority: see 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 · Partnership firm registration in Punjab · How to register a sole proprietorship · How to get an NTN · Token tax in Punjab · Business