PUNJAB FINANCE ACT, 1972

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THE PUNJAB FINANCE ACT, 1972 
(I of 1972) 
CONTENTS 
1. Short title, extent and commencement 
2. Definition 
3. Surcharge on agricultural income tax 
4. Tax on cinemas 
5. Surcharge on motor vehicles tax 
6. Enhancement of fees relating to motor vehicles 
7. Amendment of Punjab Ordinance XI of 1971 
8. Amendment of W.P. Act V of 1958 
9. Omitted 
10. Application of existing laws 
11. Bar of suits in civil courts 
12. Power to make rules 
SCHEDULES 
1. FIRST SCHEDULE 
2. SECOND SCHEDULE 
 
TEXT 
1
THE PUNJAB FINANCE ACT, 1972 
(I of 1972) 
[29th June, 1972] 
An 
Act 
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; 
It is hereby enacted as follows:– 
1. Short title, extent and commencement .– (1) This Act may be called the 
Punjab Finance Act, 1972. 
(2) It shall extend to the whole of the Province of the Punjab. 
(3) It shall come into force on and from the 1st day of July, 1972. 
2. Definition.– In this Act, unless there is anything repugnant in the subject or 
context, “Government” means the Government of the Punjab. 
3. Surcharge on agricultural income tax.– (1) There shall be levied and 
collected from every owner of land which is assessed to agricultural income  tax, on 
the land revenue payable in the agricultural year 1971 -72, an add itional amount of 
agricultural income  tax by way of surcharge at the rates specified in the First 
Schedule to this Act. 
Explanation.– For the purpose of this section, “agricultural year” means the 
agricultural year as defined in the West Pakistan
2
 Land Revenue Act, 1967. 
(2) The provisions of the Punjab Agricultural Income tax Act, 1951, and the 
Bahawalpur State Agricultural Income tax Act, 1949, and the rules made thereunder 
shall, so far as may be, apply to the assessment, collection and recovery of the 
surcharge imposed under this section. 
4. Tax on cinemas. – (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 1972-73:– 
(i) In the case of a cinema classed as a 
first class cinema. 
Three thousand rupees. 
                                                           
1This Act was pass ed by the Punjab Assembly on 28th June, 1972; assented to by the Governor of the Punjab on 29th June, 
1972; and, published in the Punjab Gazette (Extraordinary), dated 29th June, 1972, pages 1155 to 1162. 
2Now “Punjab”, see the Punjab Laws (Adaptation) Ord er, 1974 (Pb A.O. 1 o f 1974); and published in the Punjab Gazette 
(Extraordinary), dated 20.11.1974, pages 1425 -A to 1425 -PP, see Article 2 and Schedule, Part I II, at entry No.90  (w.e.f. 
14.8.1973). 
(ii) In the case of a cinema classed as a 
second class cinema. 
One thousand rupees. 
(iii) In the case of a cinema classed as a 
third class cinema. 
One hundred rupees. 
(2) If the person responsible for 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 tax, a penalty not exceeding 
the amount of the tax payable. 
5. Surcharge on mot or vehicles 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 
force, a surcharge on such tax payable by the person by whom the tax is payable at 
the following rates for the financial year 1972-73:– 
(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. 
6. Enhancement of fees relating to motor  vehicles.– Notwithstanding 
anything to the contrary contained in the West Pakistan
3
 Motor Vehicles Ordinance, 
1965, or the West Pakistan Motor Vehicles Rules, 1969, the fees payable under the 
rules mentioned in column 2 of the Second Schedule to this Act,  shall, in the 
financial year 1972-73, be paid at the rates specified in column 3 thereof. 
7. Amendment of Punjab Ordinance XI of 1971 .– In the Punjab Finance 
Ordinance, 1971, for section 11, the following section shall be substituted:– 
“11. No levying of tax on buildings and lands by local bodies – 
Notwithstanding anything 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
4
 Urban Immovable Property Tax Act, 1958: 
Provided that the tax assessed by a local 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 
                                                           
3Now “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. 
4Now “Punjab”, 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. 5 (w.e.f. 
14.8.1973). 
People’s Mun icipal Committee and a People’s Town Committee constituted under 
the Punjab People’s Local Government Ordinance, 1972.” 
8. Amendment of W.P. Act V of 1958.– In the West Pakistan Urban Immovable 
Property Tax Act, 1958, in its application to the Province of the Punjab,– 
(a) for section 3, the following section shall be substituted:– 
“3. Levy of tax – (1) Government may by notification specify urban 
areas where tax shall be levied under this Act: 
Provided that one urban area may be divided into two or more 
rating areas or several urban areas may be grouped as one rating 
area. 
(2) Subject to the provisions of sub -sections (3) and (4), 
there shall be levied, charged and paid, a tax on the annual value of 
buildings and lands in a rating area at the rate of twenty p er cent of 
such annual value. 
(3) In case of property of the annual value not exceeding 
three thousand rupees, owned by a widow or by a minor whose father 
is dead, a deduction of five hundred rupees from the annual value shall 
be allowed. 
(4) In case of pr operty of the annual value not exceeding 
twelve thousand rupees, other than the property referred to in sub -
section (3), a deduction of two hundred and seventy rupees from the 
annual value shall be allowed. 
(5) 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 the rating area. 
(6) The tax shall be due from the owner of buildings and 
lands.” 
(b) for section 3-A, the following section shall be substituted:– 
“3-A. Share of local bodies in the tax – Out of the tax collected 
under this Act from within the limits of a local body, the Government 
shall, after retaining five per cent thereof as collection charges, pay 
forty per cent of the balance to such local body. 
Explanation.– In this section, “local body” means a Municipal 
Committee constit uted 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 
under the Punjab People’s Local Government Ordinance, 1972.”; and 
(c) in section 4, for clause (c), the following clause shall be substituted:– 
“(c) buildings and lands, the annual value of which does not exceed 
four hundred and thirty two rupees: 
Provided that if such buil ding or land is in the ownership of a person who 
owns any other building or land in the same rating area, the annual value of such 
building or land, shall, for the purposes of this clause, be deemed to be the 
aggregate annual value of all buildings and lands owned by him in that area;”. 
5
[9. * * * * * * * * * * * *   ] 
10. Application of existing laws.– Where any tax, duty or surcharge imposed or 
any fee levied by this Act 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 assessm ent, collection and recovery of the additional tax, 
duty, surcharge or fee, 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, duty, surcharge or f ee, made 
under this Act and the rules framed thereunder or any penalty imposed under sub -
section (2) of section 4 of this Act. 
12. Power to make rules .– (1) Government may make rules for carrying into 
effect the purposes of this Act and such rules may, amo ng 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 Act, in so far as 
such procedure is not provided in this Act. 
(2) Any rules made or d eemed to have been made under the 
corresponding provisions of the Punjab Finance Ordinance, 1971, shall, so far as 
may be, continue in force and be deemed to have been made under this Act. 
                                                           
5Omitted by the Punjab Finance Act 2013 (XVI of 2013); and published in the Punjab Gazette (Extraordinary), 
dated 29.6.2013, pages 3075-3078, s.5. 
FIRST SCHEDULE 
(See section 3) 
Slabs of total land revenue Amount of surcharge in 
respect of each slab 
Where the total land revenue payable does not exceed 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 
 
SECOND SCHEDULE 
(See SECTION 6) 
Serial 
No. 
Description of fee and relevant rule of the West Pakistan Motor Vehicles Rules, 
1969 
Rate of fee. 
  Rs. 
1 Fee for the test of competence to drive, under sub-rule (3) of rule 8. 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. 
10 
3. Fee for learner’s driving licence, under sub-rule (2) of rule 19. 10 
4. Fee for the issue of driving licence, under clause (i) of rule 26. 20 
5. Fee for renewal of driving licence, under clause (ii) of rule 26–  
6 (a) where the application for renewal is made within thirty days from the date of 
the expiry of the licence; and 
10 
 (b) where the application for renewal is made after thirty days of the date of the 
expiry of the licence. 
20 
7. 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. 
10 
8. Fee for duplicate certificate on loss or destruction of certificate of registration and 
certificate of fitness of a transport vehicle, under sub-rule (2) of rule 38. 
15 
9. Fee for 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.  
15 
10. 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 weighing more than one ton unladen; 
10 
 (b) in respect of a heavy transport vehicle; 60 
 (c) in respect of any other vehicle; and 30 
 (d) in respect of temporary registration of any vehicle 10 
11. Fee for transfer of ownership of a motor vehicle, under sub-rule (1) of rule 47. Same as in respect of 
registration fee 
mentioned at Serial 
No.9.