THE PUNJAB FINANCE ORDINANCE, 1978 
(XIII of 1978) 
CONTENTS 
1. ***** 
2. ***** 
3. ***** 
4. ***** 
5. ***** 
6. ***** 
7. ***** 
8. ***** 
9. ***** 
10. Application of existing laws 
11. Bar of suits in Civil Courts 
12. ***** 
TEXT 
THE PUNJAB FINANCE ORDINANCE, 1978 
(XIII of 1978) 
(Provisions Relating to Hotel Tax) 
[27th June, 1978] 
An 
Ordinance 
to levy and enhance the rates of certain taxes and duties, in the Province of the 
Punjab. 
WHEREAS it is expedient to levy and enhance the rates of certain taxes and 
duties in the Province of the Punjab: 
Now, therefore, in pursuance of the Proclamation of Fifth day of July, 1977, 
read with the Laws(Continuance in Force) Order, 1977 (C.M.L.A. Order No.1 of 
1977), the Governor of the Punjab is pleased to make and promulga te the following 
Ordinance:– 
1. (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 
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6. (1) For the existing section 12 of the Punjab Finance Act, 1965, t he 
following shall be substituted, namely– 
1
[“12 (1) There shall be levied and collected every ye ar a tax on hotels, 
payable by the owner or management thereof, at the rate of 
2
[Eight] percent of 
the daily charges for the lodging units of a hotel actually occupied: 
Provided that no tax shall be levied if daily charges for a lodging units are less 
than rupees twenty five: 
Provided further that a hotel at a Hill Station shall be charged in tax at half of 
the prescribed rate”]. 
(2) The tax shall be paid in one or more instalments in the manner fixed by 
Government. 
                                                           
1Subs vide Punjab Finance Act, 1990 
2Subs vide Punjab Finance Act, 1996 
(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 authorize, an officer subordinate to him to 
enter, any hotel. 
Explanation.– In this section, u nless there is anything repug nant in the subject or 
context– 
(a) “charges” include charges in respect of fans, air -condition, light, 
heating , telephone, bedding and all other payments connected with 
the lodging unit except the portion if any directly attr ibutable 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 shall 
not include- 
i) any home or hotel maintained exclusively for aged or suc h 
persons, or as the case may be, for students. By or under the 
control of charitable, medical or educational institution; and  
ii) any rest house, mess or other premises belonging 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 Force. 
(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 ot her 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.” 
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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 such 
enactment and rules framed there under 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 there under. 
12. (1) Government may make rules for carrying into effect the purposes of 
this Ordinance and such rules may, among other matter, 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 for 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.