Tax Relief

Foodpanda thanks PRA for gross sales tax relief

KARACHI: In order to create a favorable business environment, the Punjab Revenue Authority decided to lower the sales tax that is levied on commissions for home-based chefs, a statement said.

The discount cut sales tax from 16 percent to 5 percent, which allows for better profitability and growth potential for home-based chefs who operate on online grocery delivery platforms like foodpanda, she added.

The home-based chefs are essentially people who work from their home kitchens and sell groceries through online platforms like foodpanda. Foodpanda currently has over 5,000 registered chefs at home who have been taken on board after strict routine checks on food hygiene, quality, safety, packaging, etc.

The company aims to increase the number of local chefs to 100,000 over the next two years.

Nauman Sikandar, CEO of foodpanda, said: “A big thank you to foodpanda’s Punjab Revenue Authority (PRA) and our local chefs. The reduction in sales tax [the] Commissions for home-based chefs are a welcome change. This move will help build a new sector that has significant potential for financial and economic inclusion, particularly the economic empowerment of women. “

“It would be ideal if other provinces follow suit and do the same for home cooks,” he said.

Shahzadi Asghar, a registered cook with foodpanda, said in her gratitude, “In today’s situation, it is very difficult to do business, even if it is a home based business. Thanks to foodpanda and PRA, sales tax has now been reduced by 11 percent, which in turn has significantly improved our margins. I am now considering expanding my food company with this inexpensive initiative. “

The visionary move by the Punjab government needs to be supported by other provinces as the sector continues to grow exponentially across the country.

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