PUNJAB FINANCE ORDINANCE, 1978

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THE PUNJAB FINANCE ORDINANCE, 1978 
(XIII of 1978) 
CONTENTS 
1. Short title and commencement 
2. Amendment of section 3 of the Punjab Urban Immovab le Property Tax 
Act, 1958 (W.P. Act No. V of 1958) 
3. Amendment of the Punjab Entertainments Duty Act, 1958 (W.P. Act No.  
X of 1958) 
4. Amendment of the Punjab Motor Vehicles Taxation Act, 1958 (W.P. Act 
No. XXXII of 1958) 
5. Repealed 
6. Amendment of the Punjab Finance Act, 1965 (W.P. Act I of 1965) 
7. Amendment of the Punjab Finance Act, 1973 (Punjab Act No. XIV of 
1973) 
8. Amendment of the Punjab Finance Act, 1977 (Punjab Act No. XV of 1977) 
9. Repealed 
10. Application of existing laws 
11. Bar of suits in Civil Courts 
12. Powers to make rules 
SCHEDULES 
1. FIRST SCHEDULE 
2. SECOND SCHEDULE 
TEXT 
1
THE PUNJAB FINANCE ORDINANCE, 1978 
(XIII of 1978) 
[27th June, 1978] 
An 
Ordinance 
to levy and enhance the rates of certain taxes and duties in the Province of the 
Punjab. 
Preamble.– WHEREAS it is expedient to levy and enhance the rates of certain taxes 
and duties in the Province of the Punjab: 
 NOW, THEREFORE,  in pu rsuance of the Proclamation of F ifth day of July, 
1977, read with the Laws (Continuan ce in Force) Order, 1977 (C.M.L.A. Order. No.1 
of 1977), the Governor of the Punjab is pleased to make and promulgate the 
following Ordinance:– 
1. Short title and commencement. – (1) This Ordinance may be called the 
Punjab Finance Ordinance, 1978. 
 (2) It shall extend to the Province of the Punjab. 
 (3) It shall come into force on and from the first day of July, 1978. 
2. Amendment of section 3 of the Punjab Urban Immovable Property Tax 
Act, 1958 (W.P. Act No. V of 1958). – In the Punjab Urban Immovable Property Tax 
Act, 1958, in section 3, after sub -section (6), the following new sub -section shall be 
added, namely– 
“(7) A rebate equal to five per cent of the amount of annual tax for a 
financial year will be given if the amount of annual tax is paid in lump 
sum on or before the 31st day of August of the financial year.” 
3. Amendment of the Punjab Entertainments Duty Act, 1958 (W.P. Act No.  
X of 1958). – In the Punjab Entertainments Duty Act, 1958 in section 3, in sub -
section (1) for the words “one hundred and twenty -five pe r cent”, the words “one 
hundred and fifty per cent” and for the words “one hundred per cent”, the words “one 
hundred and twenty-five per cent” shall be substituted. 
4. Amendment of the Punjab Motor Vehicles Taxation Act, 1958 (W.P. Act 
No. XXXII of 1958).– In the Punjab Motor Vehicles Taxation Act, 1958,– 
(i) in section 3 after sub -section (2), the following new sub -section shall be 
added, namely– 
                                                           
1This Ordinance was promulgated by the Governor of the Punjab on 25th June, 1978; and was published in the Punjab Gazette 
(Extraordinary), dated 27th June, 1978, pages 773-781. 
“(3) A rebate equal to 10 per  cent of the amount of annual tax for a 
financial year will be given if the amount  of annual tax is paid in 
lump sum on or before the 31st day of July of the financial year”. 
(ii) for the Sched ule, the Schedule given in the F irst Schedule to this 
Ordinance shall be substituted. 
2
[5. Amendment of Section 13 of the Punjab Finance Act , 1964 (W.P. Act No. 
XXXIV of 1964).– ** * * * ** * ** ].  
6. Amendment of the Punjab Finance Act, 1965 (W.P. Act  No. I of 1965). – 
For the existing section 12 of the Punjab Finance Act, 1965, the following shall be 
substituted, namely– 
“12(1) There shall be levied and collected every year a tax on hotels, payable 
by the owner or management thereof, at the following rates:– 
(a) In case of hotel charging not less than 
twenty-five rupees and not more than 
fifty rupees per lodging unit per day. 
Two rupees and fifty paisa per lodging unit per 
day 
3
[for the lodging units actually occupied.]  
(b) In case of a hotel charging more than 
fifty rupees but not more than one 
hundred rupees per lodging unit per 
day. 
Five rupees per lodging unit per day 
4
[for the 
lodging units actually occupied.] 
(c) In case of a hotel charging more than 
one hundred rupees but not more than 
two hundred rupees per lodging unit per 
day, 
Ten rupees per lodging unit per day 
5
[for the 
lodging units actually occupied.]  
(d) In case of a hotel chargi ng more than 
two hundred rupees but not more than 
three hundred rupees per lodging unit 
per day. 
Fifteen rupees per lodging unit per day 
6
[for 
the lodging units actually occupied.] 
(e) In case of a hotel charging more than 
three hundred rupees per lodging  unit 
per day. 
Twenty rupees per lodging unit per day 
7
[for 
the lodging units actually occupied]: 
Provided that a hotel at a hill station shall be charged the tax at half the rate 
applicable to it. 
(2) The tax shall be paid in one or more installments in the manner fixed 
by Government. 
                                                           
2Repealed by the Punjab Finance (Amendment) Ordinance, 1978 (XIV of 1978 misprinted in the Gazette as XIII); and published 
in the Punjab Gazette (Extraordinary), dated 9.7.1978, pages 861-A to 861-B, s.2 (w.e.f. 1.7.1978).  
3Substituted for the words “on seventy-five percent of total number of such lodging units” by the Punjab Finance (Amendment) 
Ordinance, 1979 (II of 1979); and published in the Punjab Gazette (Extraordinary), dated 22.1.1979, pages 200-A to 200-B, s.2 
4Ibid. 
5Ibid. 
6Ibid. 
7Substituted for the words “on seventy-five percent of total number of such lodging units” by the Punjab Finance (Amendment) 
Ordinance, 1979 (II of 1979) ; and published in the Punjab Gazette (Extraordinary), dated 22.1.1979, pages 200-A to 200-B, s.2 
(3) The assessment and collection of the tax and the assessment of the 
total number of lodging units shall be made by such agency and in such manner as 
may be prescribed and the assessing authority may for this purpose– 
(a) require the owner or the management of a hotel to produce any book of 
accounts, documents or other papers in his possession or power which 
are believed to contain information relating to the hotel; and 
(b) enter, and by written order authorise an officer s ubordinate to him to 
enter, any hotel. 
Explanation.– In this section, unless there is anything repugnant in the subject or 
context– 
(a) “charges” include charges in respect of fans, air -conditioning, light, 
heating, telephone, bedding and all other payment s connected with the 
lodging unit except the portion, if any, directly attributable to the supply 
of food-stuffs. 
(b) “hotel” means an establishment where lodging with or without boarding 
or other services are provided for a monetary consideration but shal l 
not include– 
(i) any home or hotel maintained exclusively for aged or sick 
persons, or, as the case may be, for students, by or under the 
control of a charitable, medical or educational institution; and 
(ii) any rest house, mess or other premises belongi ng to or in the 
possession of the Federal or a Provincial Government, where 
lodging, boarding or other services are provided for Government 
officials or members of the Defence Forces; 
(c) “lodger” means a person who is in possession or enjoyment of a 
residential accommodation provided by a hotel; 
(d) “lodging unit” means a bed or other sleeping accommodation which is, 
or is intended to be , provided to a lodger staying over -night in a room 
for lodging; and 
(e) “room for lodging” means a room, part of a room or a suite of rooms in 
a hotel which is normally let as a unit or residential accommodation and 
shall include a room or a part of a room or a suite of rooms provided 
free of charge to any person other than a regular employee of the 
hotel.” 
7. Amendment of the Punjab Finance Act, 1973 (Punjab Act No. XIV of 
1973).– For the Second Schedule to the Punjab Finance Act, 1973, the Schedule 
given in the Second Schedule to this Ordinance shall be substituted. 
8. Amendment of the Punjab Finance Act, 1977 (Punjab Act No. XV of 
1977).– In the Punjab Finance Act, 1977– 
(i) in section 3, after sub -section (4), the following new sub -section shall 
be added, namely– 
“(5) A person who fails to pay the tax within the prescribed time, 
shall, in addition to the amount of tax, be  liable to pay a penalty 
not exceeding the amount of tax.” 
(ii) in the Second Schedule, for entries at serial No.5, the following shall be 
substituted– 
1 2 3 
“5. Contractors who, during the preceding financial year, 
supplied to the Federal or any Provinci al Government or 
any Local Authority goods, commodities and services of the 
value– 
 
  Rs. 
 (i) Exceeding Rs.25 lac. 5,000.00 
 (ii) Exceeding Rs.10 lac but not exceeding Rs.25 lac. 1,000.00 
 (iii) Not exceeding Rs.10 lac. 500.00” 
8
[9. Paddy Husking Tax.– * * * * * * * * *   ] 
10. Application of existing laws. – Where any tax or duty levied by this 
Ordinance is by way of an addition to any existing tax or duty imposed by or under 
any enactment or rules in force in the Punjab, the procedure provided in suc h 
enactment and rules framed thereunder for the assessment, collection and recovery 
of such tax or duty shall, as far as applicable, apply to the assessment, collection 
and recovery of additional tax or duty as the case may be. 
11. 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 or duty made under this 
Ordinance and the rules framed thereunder. 
12. Powers 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 or 
duty levied or the imposition of any penalty under this Ordinance, in so far as the 
procedure is not provided in this Ordinance. 
(2) Any rules made or deemed to have been made under the 
corresponding provisions of the Provincial laws concerned shall, as far as may be, 
continue in force and be deemed to have been made under this Ordinance. 
                                                           
8Deleted by the Punjab Finance Ordinance, 2000 (III of 2000) ; and published in the Punjab Gazette (Extraordinary), dated 
30.6.2000, pages 587 -595, s.8, 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. 
FIRST SCHEDULE 
(See SECTION 4) 
Serial 
No. 
Description of Motor Vehicles Annual rate of tax 
1 2 3 
1. Motor-cycles (including motor scooters) and M otor-cycles with 
attachment for pro-pelling the same by mechanical power not exceeding 
410 Kg. in unladen weight– 
Rs. 
 (a) Bicycles not exceeding 90 Kg. in unladen weight. 52.00 
 (b) Bicycles exceeding 90 Kg. in unladen weight. 68.00 
 (c) Bicycles drawing a trailer or side-car Rate for 
appropriate cycle 
plus Rs. 16.00 
 (d) Tricycles 68.00 
2. Vehicles (including tricycles ) used for the transport or haulage of goods 
or materials weighing more than 410 Kg. in unladen weight:– 
 
 (a) Electrically propelled vehicles not exceeding 1,250 Kg. in 
unladen weight. 
56.00 
 (b) Vehicles with maximum laden capacity upto 2,030 Kg. (incl uding 
delivery vans) 
376.00 
 (c) Vehicles with maximum laden capacity exceeding 2,030 Kg. but 
not exceeding 4,060 Kg. 
628.00 
 (d) Vehicles with maximum laden capacity exceeding 4,060 Kg. but 
not exceeding 6,090 Kg. 
952.00 
 (e) Vehicles with maximum lade n capacity exceeding 6,090 Kg. but 
not exceeding 8,120 Kg. 
1,876.00 
 (f) Vehicles with maximum laden capacity exceeding 8,120 Kg. 2,828.00 
 (g) Vehicles drawing a trailer  Rate for 
appropriate 
vehicles plus 
Rs.252.00 
3. Vehicles plying for hire and ordi narily used for the transport of 
passengers (taxis and buses) – 
 
 (a) Tram Cars 28.00 
 (b) Tricycles propelled by mechanical power (rickshaw cabs) with 
seating capacity of not more than 3 persons. 
392.00 
 (c) Motor vehicles with a seating capacity of mo re than 20 persons 
plying for hire exclusively within the limits of a Corporation, 
Municipality or Cantonment. 
88.00 
per seat 
 (d) Mini Buses with a seating capacity of more than 6 and less than 
20 persons plying for hire exclusively within the limits of 
Corporation, Municipality or Cantonment. 
132.00 
per seat 
 (e) Other vehicles with a seating capacity of not more than 4 
persons. 
520.00 
Serial 
No. 
Description of Motor Vehicles Annual rate of tax 
1 2 3 
 (f) Other vehicles with a seating capacity of more than 4 but not 
more than 6 persons. 
652.00 
 (g) Other vehicles with a seating capacity of more than 6 persons. 
  
Explanation– 
        The seating capacity for the purpose of this Article does not 
include the seats meant for driver and conductor. 
168.00 
per seat 
4. Motor vehicles other than those mentioned above and having–  
 (a) seating capacity of not more than 1 person 132.00 
 (b) seating capacity of not more than 3 persons 268.00 
 (c) seating capacity of more than 3 persons 96.00 
per seat 
 Note– Station wagons used for private purposes shall be taxed under 
Serial No.4. 
 
 
SECOND SCHEDULE 
(See SECTION 7) 
Serial 
No. 
Description of fee and relevant rule of the West Pakistan Motor 
Vehicles Rules 1969 
Rate of Fee  
1 2         3           Rs. 
1. Fee for the test of competence to drive, under sub-rule(3) of rule 8. 20.00 
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 
20.00 
3. Fee for learner’s driving licence, under sub-rule (2) of rule 19. 20.00 
4. Fee for issue of driving licence, under clause (i) of rule 26. 40.00 
5. Fee for renewal of driving licence, under clause (ii) of rule 26–  
 (a) where the application for renewal is made within thirty days from the 
date of the expiry of the licence; and 
20.00 
 (b) where the application for renewal is ma de after thirty days of the date 
of the expiry of the licence. 
40.00 
6. Fee for duplicate certificate on loss or destruction of certificate of 
registration and certificate of fitness of a vehicle, other than a transport 
vehicle, under sub-rule (2) of rule 37. 
20.00 
7. Fee for duplicate certificate on loss or destruction of certificate of 
registration and certificate of fitness of transport vehicle, under sub -rule (2) 
of rule 38. 
30.00 
8. Fee for a duplicate certificate of a defaced or torn certificate of  registration 
and certificate of fitness of a transport vehicle, under sub-rule (2) of rule 39. 
30.00 
9
[9. Registration fee under Rule 42–  
 (a) in respect of a motor -cycle, scooter or a trailer not having more than 
two wheels and not weighing more than one ton in unladen weight; 
200 
 (b) in respect of an invalid car or carriage; 100 
 (c) in respect of a heavy transport vehicle; 1,500 
 (d) in respect of any other vehicle; and 700 
 (e) in respect of temporary registration of any vehicle. 100 
10. Fee for transfer of ownership of a motor vehicle , under sub -rule (1) of r ule 
47 shall be charged at the following rates:- 
 
 (i) a motorcycle, a scooter and an invalid carriage or a trailer not having 
more than two wheels and not weighing more than one ton in 
unladen weight; 
100 
                                                           
9Substituted by the Punja b Finance Act, 1990 (I of 1990); and published in the Punjab Gazette (Extraordinary), dated 
28.6.1990, pages 1165-A to 1165-G, s.4. 
Serial 
No. 
Description of fee and relevant rule of the West Pakistan Motor 
Vehicles Rules 1969 
Rate of Fee  
1 2         3           Rs. 
 (ii) a heavy transport vehicle; and 1,000 
 (iii) any other vehicle 450]