PUNJAB FINANCE ACT 1998

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THE PUNJAB FINANCE ACT 1998 
(VII of 1998) 
CONTENTS 
1. Short title, extent and commencement 
2. Amendment of Act II of 1899 
3. Amendment of Act V of 1958 
4. Amendment of Act XXXII of 1958 
5. Amendment of Act XIV of 1973 
6. Amendment of Act XV of 1977 
7. Amendment of Ordinance VI of 1980 
8. [Repealed]  
9. [Repealed]  
 
 
TEXT 
1
THE PUNJAB FINANCE ACT 1998 
(VII of 1998) 
[30th June, 1998] 
An 
Act 
to levy and enhance the rates of certain taxes, duties and fees in the Punjab. 
Preamble.– Whereas, it is expedient to levy and enhance the rates of c ertain taxes, 
duties and fees in the Punjab; 
 It is hereby enacted as follows:– 
1. Short title, extent and commencement .– (1) This Act may be called the 
Punjab Finance Act 1998. 
 (2) It shall extend to whole of the Punjab. 
 (3) It shall come into force on and from the first day of July 1998. 
2. Amendment of Act II of 1899 .– In the Stamp Act, 1899 (II of 1899), in 
Schedule I– 
 (1) in Article 4, for the word “ten”, the word “twenty” shall be substituted; 
 (2) in Article 5– 
(i) in sub-article (cc), for the wor d “fifty”, the words “one hundred” 
shall be substituted; and 
(ii) in sub-article (d), for the word “twenty”, the word “fifty” shall be 
substituted; 
 (3) after Article 11-A, the following Article 11-B shall be added– 
“11-B. AUTHENTICATED DECLARATIONS that is to 
say declarations of newspapers, periodicals or printing 
presses authenticated by a legally competent 
authority. 
Five thousand 
rupees per 
Declaration. 
Explanation I.– The duty shall be paid by the declarant. 
Explanation II.– The declaration shall not be authenticated unless the duty is paid.”; 
 (4) in Article 48– 
(i) in sub -article (a), for the words “one hundred”, the words “five 
hundred” shall be substituted; and 
                                                           
1This Act was passed by the Punjab Asse mbly on 25th June, 1998; assented to by the Governor of the Punjab on 30th June, 
1998; and, was published in the Punjab Gazette (Extraordinary), dated 30th June, 1998, pages 1577-1580. 
(ii) after sub-article (b), the following new sub-article (bb) shall be 
added– 
“(bb) when given without consideration for 
authorising the attorney to sell any 
immovable property. 
One thousand 
rupees.”; 
 (5) in Article 53, the following sub-article (d) shall be added– 
“(d) when issued by a courier service (i.e. any private 
establishment engag ed in the business of 
transmitting or carrying for consideration letters, 
parcels or other such materials from one place to 
another) for payment made to it by the consignor 
for transmitting any material or object. 
Five percent of 
the amount 
received by the 
courier 
service.”; and 
 (6) after Article 63, the following new Article 63-A shall be added– 
“63-A. TRANSFER OF PROPRIETARY RIGHTS  
that is to say proprietary rights transferred by any 
Development Authority or any Housing Authority or 
any Cooperative Soci ety, and every instrument by 
which the property of such Authority/ Society is 
transferred. 
The same duty 
as leviable on 
Conveyance 
[No.23(b)].” 
3. Amendment of Act V of 1958 .– In the Punjab Urban Immovable Property 
Tax Act, 1958 (V of 1958)– 
 (1) in section 3, for sub-section (8), the following shall be substituted– 
“(8) From the first day of July, 1998 for calculating tax on owner 
occupied properties the annual value shall be increased by 
twenty five percent of the annual value existing on the said day.”; 
 (2) in section 4– 
  (1) for clauses (d) and (e), the following shall be substituted– 
“(d) buildings and lands or portions thereof used exclusively for 
educational purposes including schools, boarding houses 
and hostels owned by the Government or by a bod y 
owned or controlled by the Government; 
(e) public parks, playgrounds and libraries;”; 
  (2) for sub-section (gg), the following shall be substituted– 
“(gg) one residential house owned and occupied for his 
residence by a retired Government Servant of the 
Federation or a Province;”; and 
(3) clause (h) shall be omitted; 
 (3) after section 5, the following new section 5-A shall be added– 
“5-A. Valuation Tables to Ascertain Annual Value .– 
Notwithstanding the provisions of section 5, the annual value may be 
determined on the basis of such valuation tables and for such localities 
as may be notified by or under the authority of the Government.”; and 
(4) in section 7, in sub -section (1), in proviso (a), for the words “one year”, 
the words “three years” shall be substituted. 
4. Amendment of Act XXXII of 1958 .– In the Punjab Motor Vehicles Taxation 
Act, 1958 (XXXII of 1958), in the Schedule– 
 (1) in serial number 2– 
(a) for the figures “1240”, “2440”, “3680” and “5000”, the figures 
“1500”, “2800”, “4200” and “6000” shall respectively be substituted; 
and 
(b) after the existing clause (g), the following new clause (h) shall 
be added– 
“(h) vehicles with long trailers or other vehicles with 
maximum laden capacity exceeding 16000 Kg. 
Rs. 
7500/-.”; 
 (2) in serial number 3, for sub -clause (d) (iii), the following shall be 
substituted– 
“(iii) more than 6 persons– 
(1) non-air-conditioned.  Rs. 168/- per seat 
(2) air-conditioned  Rs. 300/- per seat.”; and 
(3) in serial number 4– 
(a) for the figures “250”, “700” and “1200”, the figures 
“500”, “1000” and “1800” shall respectively be 
substituted; and 
(b) for sub-clause (iv) and clause (c), the following 
shall be substituted– 
“(iv) with engine power exceeding 1600 cc– 
(1) ordinary vehicles. Rs. 
2,500/- 
(2) luxury vehicles as defined 
under section 7 of the 
Punjab Finance Act 1997. 
Rs. 
5,000/- 
(c) seating capacity of more than 6 persons– 
(1) ordinary vehicles. Rs. 300/- 
per seat 
(2) luxury vehicles as defined under 
section 7 of the Punjab Finance 
Act 1997. 
Rs.5,000/-
.” 
5. Amendment of Act XIV of 1973 .– In the Punjab Finance Act, 1973 (XIV of 
1973) in the Second Schedule - 
 (1) in serial number 1– 
(a) for the figures “30” in sub-serial (i), “30” in sub-serial (iii), “100” in sub-
serial (iv) , “50”, “60”, “50”, “60” and “40” in sub-serial (xii), the figures 
“50” in sub-serial (i), “50” in sub-serial (iii), “150” in sub-serial (iv), 
“150”, “200”, “150”, “200” and “50” in sub-serial (xii) shall respectively 
be substituted; and  
(b) after sub -serial number (xii), the following new sub -serial 
number (xii-a) shall be added– 
“(xii-a) Tractor Commercial  Rs. 100”; 
(2) in serial number 2– 
(a) for the figures “100” in sub -serial (iv), “80”, “100” in sub -serial 
(vii) and “40” in sub-serial (ix), the figures “150” in sub-serial (iv), 
“150”, “200” i n sub -serial (vii), and “50” in sub -serial (ix) shall 
respectively be substituted; and  
(b) after sub -serial number (xii), the following new sub -serial 
number (xii-a) shall be added- 
“(xii-a) Tractor Commercial  Rs. 100”; and 
(3) in serial number 9, in the proviso– 
(a) the following clause (i) shall be added– 
“(i) private cars, jeeps, station wagons and pick ups with 
engine power exceeding 1300 cc meant for purposes other than 
commercial shall be charged at the rate of two percent of the 
value of the vehicle;”; and 
(b) the existing clauses (i), (ii) and (iii) shall be renumbered as (ii), 
(iii) and (iv) respectively.” 
6. Amendment of Act XV of 1977 .– In the Punjab Finance Act, 1977 (XV of 
1977) in the Second Schedule, the following serial number 1-A, 9, 10 and 11 shall be 
added– 
“S.No. 
 
Class of Person Rate of tax 
per annum 
1-A Companies registered under the Companies 
Ordinance 1984, but not paying income tax and 
working with a paid up capital– 
 
 (i) exceeding rupees one million but not 
exceeding rupees ten million; 
Rs.2,000.00 
 (ii) exceeding rupees ten million but not 
exceeding rupees fifty million; 
Rs.5,000.00 
 (iii) exceeding rupees fifty million. Rs.10,000.00 
9. Prize Bond dealers and money changers.  Rs.5,000.00 
10. Car dealers, Jewelers, Electronic goods dealers, 
owners of general stores selling cosmetics 
Rs.1,000.00 
exclusively or with other goods. 
11. Member of a Stock Exchange Rs.5,000.00” 
7. Amendment of Ordinance VI of 1980 .– In the Punjab Real Estate Agents 
and Motor Vehicles Dealers (Regulation of Business) Ordinance, 1980 (VI of 1980)– 
 (1) in section 5, in sub-section (1), the proviso shall be omitted; 
 (2) in section 6, in sub- section (2), the proviso shall be omitted; and 
 (3) after section 9, the following new section 9-A shall be added– 
“9-A. Recovery of dues.– Any amount due under this Ordinance shall 
be recoverable as arrears of land revenue.” 
2
[8. Tax on mobile phone services.– *  *  *  *  *  *  *  *  *  ] 
3
[9. Tax on Luxury Clubs.–*  * *  *  *  *  *  *  *  *  *   ] 
                                                           
2Deleted by the Punjab Finance Ordinance, 2000 (III of 2000), w.e.f.1.7.2000, s.13 ; and published in the Punjab Gazette 
(Extraordinary), dated 30.6.2000, pages 587 -595, which will remain in force under the Provisional Constitution (Amendment) 
Order 1999 (9 of 1999), Article 4, notwithstanding the maximum limit of three months prescribed under Article 128 of the 
Constitution of the Islamic Republic of Pakistan. 
3Deleted by the Punjab Finance Ordinance, 2000 (III of 2000),w.e.f.1.7.2000, s. 13; and published in the Punjab Gazette 
(Extraordinary), dated 30.6.2000, pages 587 -595, which will remain in force under the Provisional Constitution (Amendment) 
Order 1999 (9 of 1999), Article 4, notwithstanding the maximum limit of three months prescribed under Article 128 of the 
Constitution of the Islamic Republic of Pakistan.