{
  "schema_version": "qanun-law-text/1",
  "id": "punjab-code-49e1b57d54e81282",
  "title": "PUNJAB FINANCE ACT 2021",
  "source_collection": "Punjab",
  "content_kind": "stored_law_text",
  "content_extent": null,
  "source_url": "https://punjabcode.punjab.gov.pk/en/show_article/U2NSZAMxBTdVNw--",
  "version": null,
  "source_snapshot": "2026-08-06T16:55:46Z",
  "legal_status": "not independently verified",
  "text_quality": "Complete stored UTF-8 TXT file recovered byte-for-byte from owned Drive. Source transcription retained verbatim; legal completeness, OCR accuracy and current consolidation unverified.",
  "text_sha256": "b30a6bf603bbcb79547fc567cfcf281dcdf0345d2577ee132bd2a5d876e3609d",
  "source_sha256": "b30a6bf603bbcb79547fc567cfcf281dcdf0345d2577ee132bd2a5d876e3609d",
  "text_version_id": "law:punjab-code-49e1b57d54e81282:sha256:b30a6bf603bbcb79547fc567cfcf281dcdf0345d2577ee132bd2a5d876e3609d",
  "quality_flags": [],
  "encoding": "UTF-8",
  "text": "THE PUNJAB FINANCE ACT 2021 \r\n(XIX of 2021) \r\nCONTENTS \r\n1. Short title, extent and commencement \r\n2. Repeal of Act X of 1958 \r\n3. Amendment of Act XXXII of 1958 \r\n4. Amendment of Act XV of 1977 \r\n5. Amendment of Act XLII of 2012 \r\n6. Amendment of Act XXX of 2015 \r\n7. Special relaxations for financial year 2021-22 \r\n \r\n  \r\n \r\n \r\nTEXT \r\n \r\n1THE PUNJAB FINANCE ACT 2021 \r\n  (XIX of 2021) \r\n    [30th June 2021] \r\n \r\n \r\nAn \r\nAct \r\nto levy, alter and rationalize certain taxes and duties in Province of the Punjab. \r\nIt is necessary in public interest to levy, alter and rationalize certain taxes and duties \r\nin the Punjab; and, to deal with ancillary matters. \r\nBe it enacted by Provincial Assembly of the Punjab as follows: \r\n1. Short title, extent and commencement .─ (1) This Act may be cited as the \r\nPunjab Finance Act 2021. \r\n (2) This Act extends to whole of the Punjab. \r\n (3) This Act shall come into force on the first day of July 2021. \r\n \r\n2. Repeal of Act X of 1958 .─ The Punjab Entertainments Duty Act, 1958 (X of \r\n1958) is hereby repealed. \r\n \r\n3. Amendment of Act XXXII of 1958 .─ In the Punjab Motor Vehicles Taxation \r\nAct, 1958 (XXXII of 1958), in the Sc hedule, in entry at Sr. No. 4, for the Explanation, \r\nthe following shall be substituted: \r\n“Explanation.- An exemption at the rate of 75 percent in motor vehicle tax in \r\nrespect of electric vehicles shall be granted till 30.06.2022.”. \r\n \r\n4. Amendment of Act XV of 1977.─ In Punjab Finance Act, 1977 (XV of 1977), \r\nin Second Schedule: \r\n (a) for entry at Sr. No.3, the following shall be substituted: \r\nSr. \r\nNo. \r\nClass of Persons Rate of tax per \r\nannum (rupees) \r\n“3 (i) Persons other than companies \r\nowning commercial establishments \r\nhaving 10 or more employees \r\n(a) Within metropolitan and \r\nmunicipal corporation limits \r\n \r\n6,000/- \r\n(b) Others 4,000/- \r\n(ii) All other commercial \r\nestablishments other than wholesalers \r\nand retailers \r\n2,000/-” \r\n                                                      \r\n1This Act was passed by Provincial Assembly of the Punjab on 25 June 2021; assented to by the Governor of the Punjab on 30 \r\nJune 2021; and, was published in the Punjab Gazette (Extraordinary), dated: 30 June 2021, pp.10047-10050. \r\n \r\n \r\n \r\n(b) in entry at Sr. No. 6, in category (vii), in subcategory (d), for the words \r\n“Motor Car” the words “Motor Vehicle” shall be substituted; and \r\n(c) after entry at Sr.No.10, the following entry shall be inserted at Sr.No.11; \r\nSr. \r\nNo. \r\nClass of Persons Rate of tax per \r\nannum (rupees) \r\n“11 Persons who are engaged in a \r\nprofession, trade, calling or employment \r\nwho were assessed to pay income tax \r\nduring the preceding financial years”. \r\n200/-” \r\n5. Amendment of Act XLII of 2012 .─ In the Punjab Sales Tax on Services Act \r\n2012 (XLII of 2012): \r\n(a) in section 2: \r\n(i) clauses (1) and (1A) shall be renumbered as (1A) and (1B) \r\nrespectively, and before clause (1A) as renumbered, the \r\nfollowing clause (1) shall be added:  \r\n“(1) “active taxpayer” means a registered person: \r\n(i) whose registration has not been suspended or \r\nblacklisted by the Authority; and \r\n(ii) who has filed his tax return for at least one of the \r\npreceding three consecutive tax periods;” \r\n(ii) in clause (11), in sub -clause (a), for the expression “the \r\nCompanies Ordinance, 1984 (XLVII of 1984)”, the expression \r\n“the Companies Act, 2017 (XIX of 2017)” shall be substituted; \r\n(iii) after clause (41), the following clause (41A) shall be inserted: \r\n“(41A) “Standard Rate” means sixteen percent”; \r\n(b) after section 10, the following section 10A shall be inserted:  \r\n“10A. Option to charge tax at standard rate.─ (1) Where any service \r\nor class of services is chargeable at a reduced rate under the Second \r\nSchedule, any person or class of persons providing such service or \r\nservices may, with the permission of the Authority, opt to charge sales \r\ntax at the standard rate subject to such conditions, restrictions and \r\nlimitations as may be specified by the Authority. \r\n(2) The permission granted under subsection (1) shall be \r\nirrevocable except with the permission of the Authority. \r\n(3) Where the Authority has reasons to believe that the \r\ntaxpayer has misused the option, the Authority may withdraw the \r\npermission granted under sub section (1) at any time after affording an \r\nopportunity of being heard.”; \r\n \r\n(c) in section 48: \r\n \r\n \r\n(i) in entry at S. No. 20, in column 4, for the expression “59A”, the \r\nexpression 59B shall be substituted; \r\n(ii) after entry at S. No. 20, the following entry 21 shall be added:  \r\nSr.No. Offence Penalty Section \r\n“21 Where a registered \r\nperson charges \r\nsales tax in excess \r\nto the rate provided \r\nin the Second \r\nSchedule \r\nSuch person shall be \r\nliable to pay a penalty \r\nof rupees ten thousand \r\nper invoice or ten \r\npercent of the invoice \r\namount, whichever is \r\nhigher  \r\n10”; \r\n(d) in section 59, in sub-sections (1) and (2), after the word “provision”, the \r\nwords “and receipt” shall be inserted; \r\n(e) in section 65, sub-sections (7) and (8) shall be omitted. \r\n(f) in the Second Schedule: \r\n(i) in entry at S.No.7, in column (4), after category (a), the following \r\ncategory (aa) shall be inserted: \r\n“(aa) Five percent for insurance agents and insurance \r\nbrokers”; \r\n(ii) in entry at Sr.No.11, in column (4), in category (a), after the \r\nwords “credit cards” the expression“, mobile wallets or QR \r\nscanning” shall be inserted; \r\n(iii) in entry at Sr.No.40, in column (4), in category (a), after the \r\nwords “agricultural produce” t he words “and home chefs” shall \r\nbe inserted; \r\n(iv) in entry at Sr.No.41, in column (4), for the words “Nineteen and \r\na half” the word “Sixteen” shall be substituted; \r\n(v) in entry at Sr.No.48, in column (2), the expression “inter -city” \r\nshall be omitted; \r\n(vi) in entries at Sr. No. 18, 33, 34, 44, 50, 61, 64 and 65, in column \r\n(4), for the existing categories, the following shall be substituted: \r\n“Five percent without input tax adjustment” \r\n(vii) after entry at Sr.No.69, the following entry shall be added at Sr. \r\nNo 70: \r\nSr. No Description Classification, if \r\napplicable Rate of Tax \r\n(1) (2) (3) (4) \r\n“70 \r\nEntertainment services \r\n(including cinemas, \r\ntheatres, concerts, \r\ncircus, sports events, \r\nraces, film, fashion \r\n- \r\nZero percent \r\nwithout input \r\ntax \r\nadjustment” \r\n \r\n \r\nshows and mobile stage \r\nshows) \r\n6. Amendment of Act XXX of 2015.─ In the Punjab Infrastructure Development \r\nCess Act 2015 (XXX of 2015), in section 6, in subsection (1): \r\n(a) for the word “and” appearing for the second time, a comma shall be \r\nsubstituted; and \r\n(b) after the word “Punjab” appearing for the second time, the expression \r\n“, and the goods exempted by the Federal Government from payment \r\nof duties and taxes for import” shall be inserted. \r\n7. Special relaxations for financial year 2021 -22.─ (1) Notwithstanding \r\nanything contained in sections 3 and 12 of the Punjab Urban Immovable Property \r\nTax Act, 1958 (V of 1958), for the financial year 2021-22: \r\n(a)  discount equal to five percent of the tax being paid shall be allowed on \r\npayment of tax through e-payment system;  \r\n(b) the tax shall be paid on yearly basis or half yearly basis as the \r\nassessee may choose or the such later date as the Government may \r\nby notification determine, and \r\n(c) for financial year 2021-22, the tax shall be collected as follows: \r\n(i) in first quarter with five percent rebate in the amount of annual \r\ntax; \r\n(ii) in second quarter, the amount of annual tax without any rebate; \r\nand \r\n(iii) in third and fourth quarters, the amount of annual tax with one \r\npercent surcharge per month on the gross payable tax.  \r\n(2) Notwithstanding anything contained in sections 3 and 9 of the Punjab Motor \r\nVehicle Taxation Act, 1958 (XXXII of 1958), for the financial year 2021-22: \r\n(a) discount equal to five percent of the tax being paid shall be allowed on \r\npayment of tax through e-payment system;  \r\n(b) for financial year 2021-22, the tax shall be collected as follows: \r\n(i) in first quarter with ten percent rebate in the amount of annual \r\ntax; \r\n(ii) in second quarter, the amount of annual tax without any rebate; \r\nand \r\n(iii) in third and fourth quarters, the amount of annual tax with such \r\npenalty as may be determined under section 9.  \r\n(3) This section shall remain in force till 30th day of June 2022.",
  "passage_offset_convention": "zero-based Unicode code points and UTF8 bytes; end exclusive",
  "passages": [
    {
      "passage_id": "law:punjab-code-49e1b57d54e81282:sha256:b30a6bf603bbcb79547fc567cfcf281dcdf0345d2577ee132bd2a5d876e3609d:chars-0-1780:a43115ca13ab9551dbf0e6802e2f3ac1135458d40c585b398f5dac722f0875b3",
      "character_start": 0,
      "character_end": 1780,
      "utf8_byte_start": 0,
      "utf8_byte_end": 1794,
      "passage_sha256": "a43115ca13ab9551dbf0e6802e2f3ac1135458d40c585b398f5dac722f0875b3",
      "reader_fragment": "p-0-1780-a43115ca13ab9551"
    },
    {
      "passage_id": "law:punjab-code-49e1b57d54e81282:sha256:b30a6bf603bbcb79547fc567cfcf281dcdf0345d2577ee132bd2a5d876e3609d:chars-1780-3538:388cb0f263a4ba95d1b118bb8c5be99ddbb0f571baab552ba27cb355f4bce0c6",
      "character_start": 1780,
      "character_end": 3538,
      "utf8_byte_start": 1794,
      "utf8_byte_end": 3594,
      "passage_sha256": "388cb0f263a4ba95d1b118bb8c5be99ddbb0f571baab552ba27cb355f4bce0c6",
      "reader_fragment": "p-1780-3538-388cb0f263a4ba95"
    },
    {
      "passage_id": "law:punjab-code-49e1b57d54e81282:sha256:b30a6bf603bbcb79547fc567cfcf281dcdf0345d2577ee132bd2a5d876e3609d:chars-3538-5281:c0f35144964215537fb181c8d3f2e3c3357214eaf8b6d39e337bc7019fda5780",
      "character_start": 3538,
      "character_end": 5281,
      "utf8_byte_start": 3594,
      "utf8_byte_end": 5363,
      "passage_sha256": "c0f35144964215537fb181c8d3f2e3c3357214eaf8b6d39e337bc7019fda5780",
      "reader_fragment": "p-3538-5281-c0f3514496421553"
    },
    {
      "passage_id": "law:punjab-code-49e1b57d54e81282:sha256:b30a6bf603bbcb79547fc567cfcf281dcdf0345d2577ee132bd2a5d876e3609d:chars-5281-7034:cf53aa1882d83d4ef2b1e780d77ad37bef0812a63d99d886c583f87a806b45e7",
      "character_start": 5281,
      "character_end": 7034,
      "utf8_byte_start": 5363,
      "utf8_byte_end": 7168,
      "passage_sha256": "cf53aa1882d83d4ef2b1e780d77ad37bef0812a63d99d886c583f87a806b45e7",
      "reader_fragment": "p-5281-7034-cf53aa1882d83d4e"
    },
    {
      "passage_id": "law:punjab-code-49e1b57d54e81282:sha256:b30a6bf603bbcb79547fc567cfcf281dcdf0345d2577ee132bd2a5d876e3609d:chars-7034-8386:fb88197539dfaabb3952b7c9c423666f69c8afda1f9ae6754ec686db19408bea",
      "character_start": 7034,
      "character_end": 8386,
      "utf8_byte_start": 7168,
      "utf8_byte_end": 8520,
      "passage_sha256": "fb88197539dfaabb3952b7c9c423666f69c8afda1f9ae6754ec686db19408bea",
      "reader_fragment": "p-7034-8386-fb88197539dfaabb"
    }
  ]
}