DESPITE a clarification by the Sindh government to the effect that the service tax on debit and credit card transactions is to be charged at eight per cent, and cash payments will incur a 15pc service tax, many restaurants continue to charge the full 15pc tax on card payments. Customers are generally unaware that they are paying more than the amount fixed by the government.

Under the Consumer Protection Act, customers are entitled to claim refunds for overcharged amounts. If they are charged more than the prescribed 8pc for card payments, they can file a complaint with the Consumer Protection Council (CPC), providing the receipt as proof. Complaints can be submitted either online or in-person, and the overcharged amount will have to be refunded by the establishment.

To avoid being overcharged, customers should review receipts carefully and verify the applied tax rate. Restaurants must ensure compliance with tax regul-ations, and the authorities should conduct inspections to enforce the relevant rules. Reporting discrepancies and pursuing refunds will promote transparency and accountability across the restaurants.

Ahmer N. Jakartawala
Karachi

Published in Dawn, November 21st, 2024