Punjab’s receipt crackdown is a smart, overdue step

August 11, 2026

The Punjab Revenue Authority has taken a step that deserves praise. It has banned handwritten and manual receipts for hotels, restaurants, coffee shops and marriage halls. These businesses must now use the Electronic Invoice Management System, known as EIMS, to issue receipts. This is a small change on paper, but it can bring a big shift in how Punjab collects tax.

For years, many businesses in Punjab have used handwritten slips or given no receipt at all. This made it easy to hide real sales. A shop could tell the tax authority one number and keep the true earnings elsewhere. Customers rarely questioned this, since a handwritten slip looked normal. This habit cost the province huge amounts of tax revenue every year.

The new rule closes this gap. Every sale through EIMS gets recorded electronically. This makes it much harder for a business to underreport what it earns. The PRA has also set firm penalties. Businesses that ignore the rule can face fines between four hundred thousand and one million rupees. Repeat offenders risk having their premises sealed for up to a month. These penalties send a clear message that documentation is no longer optional.

This move fits into a wider global pattern. Countries that have moved to digital invoicing have generally seen tax collection improve. Pakistan has struggled for decades with a low tax to GDP ratio, and informal cash transactions are one major reason. Punjab’s decision to enforce digital receipts is a practical, low cost way to fix part of this problem.

However, this step should be the beginning, not the end. Digital receipts alone do not close every loophole. A business can still issue a proper digital receipt while asking the customer to pay in cash outside the system. The real solution is to make digital payments themselves mandatory alongside digital receipts. If customers are required to pay through cards, mobile wallets or bank transfers, then every transaction leaves a financial trail that is far harder to manipulate.

This is simply how modern economies function. From small cafes to large retail chains, digital payments have become the norm across much of the world. Pakistan is lagging behind, and Punjab has an opportunity to lead the way. Encouraging or eventually requiring digital transactions would also benefit ordinary consumers, who would gain better protection through verified records of what they paid and for what.

The Punjab government has taken a sensible first step. The next step should be mandatory digital transactions, not just mandatory digital receipts.