How restaurants scamming customers when paying via cards

restaurants-food

LAHORE (Daily Point) — Various restaurants, both local and international, are allegedly engaging in deceptive practices by charging customers the same amount regardless of whether they use digital methods like credit/debit cards or cash.

A survey conducted by ProPakistani uncovered that electronic bills, subject to a 5 percent sales tax for cards or a 16 percent sales tax for cash, remain identical at certain food chain outlets.

In this questionable technique, outlets charge different base prices for cash and credit card payments to maintain the same overall prices on payments subject to either 5 percent or 16 percent sales tax. This fraudulent method aims to collect the same amount from customers, regardless of the sales tax rate, by inflating prices. The prices are allegedly inflated to ensure that customers making digital payments indirectly pay the higher 16 percent sales tax rate.

An illustrative case highlights the comparison of receipts for identical orders from the same restaurant—one for cash payment (16% tax) and the other for digital payment via card (5% tax). The digital payment receipt indicates an inflated price, contrary to the intended savings for the consumer.

In response to inquiries, restaurant staff claim that the system generates receipts impartially based on fixed base prices. However, a detailed comparison of identical bills raises doubts about this assertion.

The reduced sales tax on digital payments was initially introduced to promote a cashless economy and provide customers with a tax break. The reported practices suggest that some restaurants may be prioritizing profit over passing on the intended benefit to customers.

Regulatory bodies, particularly the Federal Board of Revenue (FBR), are urged to take swift action against such practices to ensure fair and transparent transactions for consumers.

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