PUNJAB FINANCE ORDINANCE, 1971

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THE PUNJAB FINANCE ORDINANCE, 1971 
(XI of 1971) 
CONTENTS 
1. Short title, extent and commencement 
2. Definition 
3. Substitution of Schedules to Punjab Act XVI of 1951 and Bahawalpur Act 
XII of 1949 
4. Surcharge on Agricultural Income Tax in certain Districts 
5. Cinema Tax 
6. Amendment of West Pakistan Act X of 1958 
7. Surcharge on Motor Vehicle Tax 
8. Enhancement of Motor Vehicle Tax 
9. Enhancement of fees relating to motor vehicles 
10. Repealed 
11. No levying of tax on buildings and lands by local bodies 
12. Amendment of West Pakistan Act V of 1958 
13. Amendment of Punjab Act I of 1914 
14. Application of existing laws 
15. Bar of suits in civil courts 
16. Power to make rules 
SCHEDULES 
1. FIRST SCHEDULE 
2. SECOND SCHEDULE 
3. THIRD SCHEDULE 
4. FOURTH SCHEDULE 
5. FIFTH SCHEDULE 
6. SIXTH SCHEDULE 
TEXT 
1
THE PUNJAB FINANCE ORDINANCE, 1971 
(XI of 1971) 
[30th June, 1971] 
An 
Ordinance 
to continue and levy certain taxes, fees and surcharges in the Province of the 
Punjab. 
Preamble.– WHEREAS it is expedient to continue and levy certain taxes, fees and 
surcharges in the Province of the Punjab; 
 NOW, THEREFORE,  in pursuance of the Martial  Law Proclamation of 25th 
March, 1969, read with the Provisional Constitution Order, and in exercise of all 
powers enabling him in that behalf, the Governor of the Punjab is pleased to make 
and promulgate the following Ordinance:- 
1. Short title, extent an d commencement.– (1) This Ordinance may be called 
the Punjab Finance Ordinance, 1971. 
 (2) It shall extend to the whole of the Province of the Punjab, except the 
Islamabad Capital Territory. 
 (3) It shall come into force on and from the 1st day of July, 1971. 
2. Definition.– In this Ordinance, unless there is anything repugnant in the 
subject or context, “Government” means the Government of the Punjab. 
3. Substitution of Schedule to Punjab Act XVI of 1951 and Bahawalpur Act 
XII of 1949.– With effect from 1st July, 1971, the Schedules appended to the Punjab 
Agricultural Income Tax Act, 1951 and the Bahawalpur State Agricultural Income Tax 
Act, 1949, shall be substituted by the First Schedule to this Ordinance. 
4. Surcharge on Agricultural Income Tax in certai n Districts .– (1) There 
shall be levied and collected from every owner of land which is assessed to 
agricultural income -tax in the districts of Campbellpur
2
, Dera Ghazi Khan
3
[,] 
Gujranwala, Gujrat, Jhelum, Jhang, Lahore, Lyallpur
4
, Mianwali, Multan, 
Muzaffargarh, Rawalpindi, Sahiwal, Sargodha, Sheikhupura and Sialkot, on the land 
revenue payable in the agricultural year, 1970 -71, an additional amount of 
agricultural income  tax by way of surcharge at the rates specified in the Second 
Schedule to this Ordinance. 
                                                           
1This Ordinance was pr omulgated by the Governor of Punjab on 30th June, 1971; published in the Punjab Gazette 
(Extraordinary), dated 30th June, 1971, pages 749 to 762; saved by Article 281 of the Interim Constitution of the Islamic 
Republic of Pakistan (1972); and, validated by the Validation of Laws Act, 1975 (LXIII of 1975); and published in the Gazette of 
Pakistan (Extraordinary), Part I, dated 29.7.1975, s.2 and Schedule. 
2Now ‘Attock’. 
3Not printed in the original Gazette. 
4Now “Faisalabad”. 
Explanation.– For purposes of this section, “agricultural year” means the agricultural 
year as defined in the West Pakistan
5
 Land Revenue Act, 1967. 
 (2) The provisions of the Punjab Agricultural Income Tax Act, 1951, and 
the rules made thereunder, sha ll, so far as may be, apply to the assessment, 
collection and recovery of the surcharge imposed under this section. 
5. Cinema T ax.– (1) There shall be levied and collected a tax on cinemas 
payable by the owners or managements thereof at the following rates  for the 
financial year 1971-72:- 
(i) In the case of a cinema classed as a 
first class cinema. 
One thousand rupees. 
(ii) In the case of a cinema classed as a 
second class cinema. 
Five hundred rupees. 
(iii) In the case of a cinema classed as a 
third class cinema. 
One hundred rupees. 
 (2) If the person responsible for the payment of the tax under sub -section 
(1) fails to pay the tax within the period prescribed under the rules for its payment, he 
shall be liable to pay, in addition to the amount of such ta x, a penalty not exceeding 
the amount of the tax payable. 
6. Amendment of West Pakistan Act X of 1958 .– In the West Pakistan
6
 
Entertainments Duty Act, 1958, in its application to the Province of the Punjab– 
(i) in section 2, clauses (aa), (aaa), (hh), (ii) and (k) shall be deleted; 
(ii) in sub-section (1) of section 3, the colon occurring before the proviso 
shall be replaced by a comma , and between the comma so replaced 
and the proviso, the following shall be inserted: – 
“in case such payment does not excee d rupees one, and at the rate of 
seventy-five per cent, excluding the amount of duty, in case such 
payment exceeds rupee one:”; 
(iii) in section 6, the words and comma “or in the case of any cinema, the 
entertainment duty is not paid in accordance with the  provisions of 
section 6-A” shall be deleted; 
(iv) section 6-A shall be omitted; 
(v) in sub-section (2) of section 11, after clause (i), the word “and” shall be 
added, and clauses (i-a), (i-b) and (i-c) shall be deleted; and 
(vi) the Schedule shall be omitted. 
7. Surcharge on Motor Vehicle Tax.– There shall be levied and collected in 
any area in which a tax is imposed on motor vehicles by or under any enactment in 
                                                           
5Now “Punjab”, see the Punjab La ws (Adaptation) Order, 1974 (Pb A.O. 1 of 1974); and published in the Punjab Gazette 
(Extraordinary), dated 20.11.1974, pages 1425 -A to 1425 -PP, see Article 2 and Schedule, Part III, at entry No.90 (w.e.f. 
14.8.1973). 
6Substituted by the Punjab Laws (Adapt ation) Order, 1974 (Pb A.O. 1 of 1974); and published in the Punjab Gazette 
(Extraordinary), dated 20.11.1974, pages 1425 -A to 1425 -PP, see Article 2 and Schedule, Part III, at entry No.6 (w.e.f. 
14.8.1973). 
force, a surcharge on such tax, payable by the person by whom the tax is payable at 
the following rates for the financial year 1971-72:- 
(i) Motor vehicles used for the 
transport or carriage of 
goods and materials. 
Twenty-five rupees. 
(ii) Motor vehicles plying for hire 
and licensed to carry more 
than eight persons. 
Fifty rupees. 
8. Enhancement o f Motor Vehicle Tax .– (1) With effect from 1st July, 1971, 
the Schedule to the West Pakistan
7 Motor Vehicles Taxation Act, 1958 (W.P. Act 
XXXII of 1958) , in its application to the Province of the Punjab, shall be substituted 
by the Third Schedule to this Ordinance. 
 (2) Section 11 of the West Pakistan
8
 Finance Act, 1965 (W.P. Act I of 
1965), in its application to the Province of the Punjab, including the Fourth Schedule 
appended thereto, is hereby repealed. 
9. Enhancement of fees relating to motor vehicles .– Notwithstanding 
anything to the contrary contained in the West Pakistan
9
 Motor Vehicles Ordinance, 
1965 (W.P. Ordinance IX of 1965) or the West Pakistan Motor Vehicles Rules, 1969, 
the fees payable under the rules mentioned in column 2 of the Fourth Sche dule to 
this Ordinance, shall, in the financial year, 1971 -72, be paid at the rates specified in 
column 3 thereof. 
10
[10. Enhancement of Electricity Duty.– * * * * * * *   ] 
11
[11. No levying of tax on buildings and lands by local bodies .– 
Notwithstanding an ything to the contrary contained in the Municipal Administration 
Ordinance, 1960, the Basic Democracies Order, 1959, or the Punjab People’s Local 
Government Ordinance, 1972, or any rule made thereunder, as from 1st of July, 
1971, no local body shall levy, charge or collect tax on any building or land situated 
in any urban area in respect of which a notification has been made under sub -
section (1) of section 3 of the West Pakistan
12
Urban Immovable Property Tax Act, 
1958: 
                                                           
7Now “Punjab”, see the Punjab Laws (Adaptation) Order, 1974 (Pb A.O. 1 of 1974) the Punjab Laws (Adaptation) Order, 1974 
(Pb A.O. 1 of 1974); and published in the Punjab Gazette (Extraordinary), dated 20.11.1974, pages 1425 -A to 1425 -PP, see 
Article 2 and Schedule, Part III, at entry No.12 (w.e.f. 14.8.1973). 
8Now “Punjab”, see the Punjab Laws (Adaptation) Order, 1974 (Pb A.O. 1 of 1974) the Punjab Laws (Adaptation) Order, 1974 
(Pb A.O. 1 of 1974); and published in the Punjab Gazette (Extraordinary), dated 20.11.1974, pages 1425 -A to 1425 -PP, see 
Article 2 and Schedule, Part III, at entry No.77 (w.e.f. 14.8.1973). 
9Now “Provincial”, see the Federal Adaptation of La ws Order, 1975 (P.O. 4 of 1975); and published in the Gazette of Pakistan 
(Extraordinary), dated 1.8.1975, pages 435-467, see Article 2(1) and Schedule, Part I. 
10Deleted by the Punjab Finance  Ordinance, 1980 (VIII of 1980); and published in the Punjab Gazette (Extraordinary), dated 
21.6.1980, pages 631-A to 631-D, s.3 (w.e.f. 1.7.1980). 
11Substituted by the Punja b Finance Act, 1972 (I of 1972); an d published in the Punjab Gazette (Extraordinary), dated 
29.6.1972, pages 1155-1161, s.7 (w.e.f. 1.7.1972) 
12Now “Punjab”, see the Punjab Laws (Adaptation) Order, 1974 (Pb A.O. 1 of 1974) the Punjab Laws (Adaptation) Order, 1974 
(Pb A.O. 1 of 1974); and pub lished in the Punjab Gazette (Extraordinary), dated 20.11.1974, pages 1425 -A to 1425 -PP, see 
Article 2 and Schedule, Part III, at entry No.5 (w.e.f. 14.8.1973). 
 Provided that the tax assessed by a l ocal body before the 1st of July, 1971, 
shall be paid to, received or recovered by such local body in accordance with the 
provisions of the said Ordinances, order or rules, as the case may be. 
Explanation.– In this section, “local body” means a Municipal Committee constituted 
under the Municipal Administration Ordinance, 1960, a Town Committee constituted 
under the Basic Democracies Order, 1959, and a People’s Municipal Corporation, a 
People’s Municipal Committee and a People’s Town Committee constituted un der 
the Punjab People’s Local Government Ordinance, 1972.] 
12. Amendment of West Pakistan Act V of 1958 .– In the West Pakistan
13
 Urban 
Immovable Property Tax Act, 1958, in its application to the Province of the Punjab– 
(a) in section 3, for sub -sections (2)  and (3), the following sub -sections 
shall be substituted:- 
“(2) Subject to the provisions of sub-sections (3) and (4) there 
shall be charged, levied and paid a tax on annual value of buildings 
and lands in a rating area at the following scales:- 
(i) In ca se the annual value 
exceeds two hundred and 
sixteen rupees but does not 
exceed six thousand 
rupees. 
Fifteen per cent of the 
annual value. 
(ii) In case the annual value 
exceeds six thousand 
rupees but does not exceed 
twelve thousand rupees. 
Seventeen-and-a-half per 
cent of the annual value. 
(iii) In case the annual value 
exceeds twelve thousand 
rupees but does not exceed 
twenty thousand rupees. 
Twenty per cent of the 
annual value. 
(iv) In case the annual value 
exceeds twenty thousand 
rupees. 
Twenty-five per cent of the 
annual value. 
(3) Where a building is occupied for residential purposes by 
the owner himself and if such owner or any member of his family does 
not own any other building in that rating area, he shall be allowed a 
deduction from the annual value at the following rates:- 
(i) In case the building is 
situated in a first class 
Municipal Committee. 
Four hundred and eighty-six 
rupees. 
(ii) In case the building is 
situated in any other urban 
area. 
Three hundred and seventy-
eight rupees. 
                                                           
13Ibid. 
(4) Government may, by notification, for reasons to be 
recorded, remit in whole or in part, the payment of the tax by any class 
of persons in respect of any category of property. 
Explanation.– The annual value for the purpose of this section shall be the 
aggregate annual value of all buildings and lands owned by the same person in a 
rating area. 
(5) The tax shall be due from the owner of buildings and lands.”; and 
(b) after section 3, the following new section shall be added:- 
 “3-A. Shares of Municipal Committees a nd Town Committees in 
the tax.– Out of the tax collected under the Act from within the limits of 
a Municipal Committee or a Town Committee, the Government shall, 
after retaining five per cent thereof as collection charges, pay forty per 
cent of the balance  to such Municipal Committee or Town Committee, 
as the case may be.”. 
13. Amendment of Punjab Act I of 1914.– In section 3 of the Punjab Excise Act, 
1914, for sub-clause (a) of clause (6), the following shall be substituted:- 
 “(a) any alcoholic liquor; or”. 
14. Application of existing laws.– Where any tax, duty or surcharge imposed or 
any fee levied by this Ordinance is by way of an addition to, or a surcharge on any 
existing tax or duty imposed or fee levied by or under any enactment and rules in 
force in  the Punjab, the procedure provided in such enactment and rules framed 
thereunder for the assessment, collection and recovery of such tax, duty or fee shall, 
so far as applicable, apply to the assessment, collection and recovery of the 
additional tax, duty, surcharge or fee, as the case may be. 
15. Bar of suits in civil courts .– No suit shall lie in any civil court to set aside or 
modify any assessment, levy or collection of a tax, duty, surcharge or fee made 
under this Ordinance and the rules framed thereu nder or any penalty imposed under 
sub-section (2) of section 5. 
16. Power to make rules .– (1) Government may make rules for carrying into 
effect the purposes of this Ordinance and such rules may, among other matters, 
prescribe the procedure for the assessment, collection and payment of any tax, duty, 
surcharge or fee levied or the imposition of any penalty under this Ordinance, in so 
far as such procedure is not provided in this Ordinance. 
(2) Any rules made or deemed to have been made under the 
corresponding provisions of the West Pakistan (Punjab) Finance Ordinance
14
, 1970, 
shall, so far as may be, continue in force and be deemed to have been made under 
this Ordinance. 
                                                           
14Now ‘Punjab Finance Ordinance,’ see the Punjab Laws (Adaptation) Order, 1974 (Pb A.O. 1  of 1974); and published in the 
Punjab Gazette (Extraordinary), dated 20.11.1974, pages 1425 -A to 1425 -PP, see Article 2 and Schedule, Part III, at entry 
No.103 (w.e.f. 14.8.1973). 
FIRST SCHEDULE 
(See Section 3) 
Slabs of total land-revenue Amount of tax in respect of each slab 
Upto Rs. 200 Nil. 
More than Rs.200 but not more than Rs.500. One-half of the land revenue. 
More than Rs.500 but not more than Rs.750. Equal to the land revenue. 
More than Rs.750 but not more than Rs.1,000. One-and-a-half times the land revenue. 
More than Rs.1,000 but not more than Rs.2,000. Twice the land revenue. 
More than Rs.2,000 but not more than Rs.3,000. Two-and-a-half times the land revenue. 
More than Rs.3,000 but not more than Rs.5,000. Three times the land revenue. 
More than Rs.5,000 but not more than Rs.8,000. Four times the land revenue. 
More than Rs.8,000 but not more than Rs.10,000. Six times the land revenue. 
More than Rs.10,000.  Seven times the land revenue. 
 
SECOND SCHEDULE 
(See Section 4) 
Slabs of total land-revenue  Surcharge 
Where the total land revenue payable does not 
exceeds Rs.349. 
Nil. 
Where the total land revenue payable exceeds Rs.349 
but does not exceed Rs.499. 
Rs.12 
Where the total land revenue payable exceeds Rs.499 
but does not exceed Rs.749. 
Rs.24 
Where the total land revenue payable exceeds Rs.749 
but does not exceed Rs.999. 
Rs.50 
Where the total land revenue payable exceeds Rs.999 
but does not exceed Rs.1,999. 
Rs.100 
Where the total land revenue payable exceeds 
Rs.1,999 but does not exceed Rs.4,999. 
Rs.250 
Where the total land revenue payable exceeds 
Rs.4,999 but does not exceed Rs.9,999. 
Rs.500 
Where the total land revenue payable exceeds 
Rs.9,999. 
Rs.1,000 
 
THIRD SCHEDULE 
(See Section 8) 
Serial 
No. 
Description of motor vehicles Annual rate of tax. 
1. Cycles (including motor scooters and cycles with 
attachment for propelling the same by mechanical 
process not exceeding 8 cwts. in unladen weight– 
 
 (a) Bicycles not exceeding 200 Ibs. in 
unladen weight. 
Rs.20 
 (b) Bicycles exceeding 200 Ibs. in u nladen 
weight. 
Rs.40 
 (c) Bicycles if used for drawing a trailer or 
side-car, in addition. 
Rs.10 
 (d) Tricycles. Rs.40 
2. Vehicles not exceeding 5 cwts. in unladen weight, 
adapted and used for invalids. 
Rs.5 
3. Vehicles used for the transport or haulag e of 
goods or materials (including tricycles weighing 
more than 8 cwts. in unladen weight): 
 
 (a) Electrically propelled vehicles not 
exceeding 25 cwts. in unladen weight. 
Rs. 35 
 (b) Vehicles other than such electrically 
propelled vehicles as aforesaid  not 
exceeding 12 cwts. in unladen weight. 
Rs. 25 
 (c) All vehicles with maximum laden 
capacity upto 5,000 Ibs. (including 
delivery vans) . 
Rs. 165 
 (d) All vehicles with maximum laden 
capacity exceeding 5,000 Ibs. but not 
exceeding 8,960 Ibs. 
Rs. 330 
 (e) All vehicles with maximum laden 
capacity exceeding 8,960 Ibs. but not 
exceeding 13,440 Ibs.  
Rs. 550 
 (f) All vehicles with maximum laden 
capacity exceeding 13,440 Ibs. but not 
exceeding 17,920 Ibs.  
Rs. 1,105 
 (g) All vehicles with maximum laden capacity 
exceeding 17,920 Ibs. 
Rs. 1,655 
 (h) Extra charges for trailer. Rs. 138 
4. Vehicles plying for hire and ordinarily used for the 
transport of passengers (taxis and buses) 
exclusively within the limits of a Corporation, a 
Municipality or a Cantonment:- 
 
 (a) Tram Cars. Rs. 15 
 (b) Tri-cycles propelled by mechanical power 
(rickshaw cabs seating not more than 3 
persons). 
Rs. 250 
 (c) Other vehicles seating not more than 4 
persons. 
Rs. 330 
 (d) Other vehicles seating more than 4 but 
not more than 6 persons. 
Rs. 415 
 (e) Other vehicles seating more than 6 
persons. 
Rs. 50 per seat. 
5. Vehicles plying for hire and ordinarily used for the 
transport of passengers (taxis and buses) not 
exclusively within the limits of a Corporation, a 
Municipality or a Cantonment– 
 
 (a) Tram Cars. Rs. 15 
 (b) Tri-cycles propelled by mechanical power 
(rickshaw cabs seating not more than 3 
persons). 
Rs. 250 
 (c) Other vehicles seating not more than 4 
person. 
Rs. 330 
 (d) Other vehicles seating more than 4 but 
not more than 6 persons. 
Rs. 415 
 (e) Other vehicles seating more than 6 
persons. 
Rs. 100 per seat. 
Note– The number of persons mentioned in Articles 4 and 5 does not include the driver and, as the 
case may be, the cleaner, the conductor or the attendant of the vehicle. 
6. Motor vehicles other than those liable to tax under 
the foregoing provisions of this Schedule– 
 
 (a) seating not more than one person Rs. 84 
 (b) seating not more than 3 persons. Rs. 161 
 (c) seating not more than 4 persons. Rs. 240 
 (d) seating more than 4 persons for every 
additional person that can be seated. 
Rs. 60 
per seat. 
Note– Station wagons used for private purposes shall be taxed under Article 6. 
FOURTH SCHEDULE 
(See Section 9) 
Serial 
No. 
Description of fee and the relevant rule of 
the West Pakistan Motor Vehicles Rules, 
1969 
Rate of fee 
1 2 3 
1. Fee for the test of competence to drive, under 
sub-rule (3) of rule 8. 
Rs. 10 
2. Fee for a duplicate licence, under sub-rule (6) of 
rule 13, sub -rule (4) of rule 14 and sub -rule (4) 
of rule 15. 
Rs. 10 
3. Fee for learner’s driving licence, under sub -rule 
(2) of rule 19. 
Rs. 10 
4. Fee for the issue of driving licence, under 
clause (i) of rule 26. 
Rs. 20 
5. Fee for renewal of driving licence, under clause 
(ii) of rule 26– 
 
 (a) where t he application for renewal is 
made within thirty days from the date of 
the expiry of the licence; and 
Rs. 10 
 (b) where the application for renewal is 
made after thirty days of the date of the 
expiry of the licence. 
Rs. 20 
6. Fee for a duplicate certific ate on loss or 
destruction of certificate of registration and 
certificate of fitness of a vehicle, other than a 
transport vehicle, under rule 37. 
Rs. 10 
7. Fee for duplicate certificate on loss or 
destruction of certificate of registration and 
certificate of fitness of a transport vehicle, under 
rule 38. 
Rs. 15 
8. Fee for duplicate certificate of a defaced or torn 
certificate of registration and certificate of 
fitness of a transport vehicle, under rule 39. 
Rs. 15 
9. Registration fee under rule 42–  
 (a) in respect of a motor -cycle and an 
invalid carriage or a trailer not having 
more than two wheels and not wei ghing 
more than one ton unladen; 
Rs. 10 
 (b) in respect of a heavy transport vehicle; Rs. 60 
 (c) in respect of any other vehicle; and Rs. 30 
 (d) in respect of temporary registration of 
any vehicle. 
Rs. 10 
10. Fee for transfer of ownership of a motor vehicle, 
under rule 47. 
Same as in Serial No. 9 for registration. 
FIFTH SCHEDULE 
(See Section 10) 
Rates of Electricity Duty 
1. For energy consume d in respect of premises not falling under Article 2 of this 
Schedule, used for– 
(a) Residential, office or 
commercial purposes. 
Two-and-a-half paisa for each unit of 
energy consumed. 
(b) An industrial undertaking. One-and-a-half paisa for each unit of 
energy consumed. 
(c) Tubewells and irrigation and 
agricultural machinery. 
One-and-a-half paisa for each unit of 
energy consumed. 
Explanation.– Premises which are used wholly or principally for carrying on 
manufacturing processes within the meaning of secti on 2 of the Factories Act, 1934, 
shall be deemed to be used for an industrial undertaking. 
2. For energy consumed 
in respect of all 
premises where the 
supply of energy by a 
licensee is unmetered. 
Four paisa for every rupee of flat charge realised 
by the li censee; provided that no duty shall be 
levied where such a charge does not exceed five 
rupees during a month. 
SIXTH SCHEDULE 
(See Section 10) 
 Exemptions– 
(i) The Central and the Provincial Governments, save in respect of 
premises used for residential purposes. 
(ii) Such autonomous bodies as may be exempted by Government by 
means of notification in the official Gazette. 
(iii) Local Authorities in respect of public lighting only. 
(iv) Mosques, churches and other places of public worship. 
(v) All domestic c onsumers using not more than 20 units in any one 
month. 
(vi) Energy consumed (including losses of energy) in generation, 
transmission and transformation. 
(vii) Energy generated by plants having capacity not exceeding 2  1/2 
kilowatts.