PUNJAB FINANCE ACT 1977

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THE PUNJAB FINANCE ACT 1977 
(XV of 1977) 
CONTENTS 
1. Short title, extent and commencement 
2. Amendment of the Punjab Motor Vehicles Taxation Act , 1958 (W.P. Act 
No. XXXII of 1958) 
3. Tax on persons engaged in professions, trades, callings or 
employments 
4. Amendment of West Pakistan Act No. X of 1958 
5. Amendment of Schedule of Act No. II of 1899 
6. Application of existing laws 
7. Bar of suits in civil courts 
8. Power to make rules 
SCHEDULES 
1. FIRST SCHEDULE 
2. SECOND SCHEDULE 
 
TEXT 
1
THE PUNJAB FINANCE ACT 1977 
(XV of 1977) 
[28th June, 1977] 
An 
Act 
to enhance the rates of certain taxes and duties in the Province of the Punjab. 
Preamble.– WHEREAS it is expedient to enhance the rates of certain taxes and 
duties in the Province of the Punjab; 
It is hereby enacted as follows:– 
1. Short title, extent and commencement .– (1) This Act may be called in the 
Punjab Finance Act, 1977. 
(2) It shall extend to the Province of the Punjab. 
(3) It shall come into force on and from the first day of July, 1977. 
2. Amendment of the Pun jab Motor Vehicles Taxation Act , 1958 (W.P. Act 
No. XXXII of 1958) .– For the Schedule to the Punjab Motor Vehicles Taxation Act, 
1958, the Schedule given in the First Schedule to this Act shall be substituted. 
3. Tax on persons engaged in professions, trades, callings or 
employments.– (1) With effect from 1st July, 1977, there shall be levied and 
collected from the persons or classes of persons mentioned in column 2 of the 
Second Schedule to this Act engaged in a profe ssion, trade, calling or employment 
2
[wholly or partly] in the province of the Punjab a tax for each financial year at the 
rates mentioned in column 3 of the said Schedule. 
(2) If a person is engaged in more than one profession, trade, calling or 
employment he shall pay the tax only in respect of one such profession, trade, 
calling or employment for which rate of tax is the highest. 
3
[(2a) In case of employment, the drawing and disbursing officer or a principal 
officer of a local authority, company or other  public body, as the case may be, shall 
deduct the amount of the tax from the salaries of its employees and deposit in 
treasury. 
(2b) Where the drawing and disbursing officer or the principal officer who 
fails to deduct amount of the tax under sub -section (2a) or fails to deposit deducted 
                                                           
1This Act was passed by the Punjab Assembly on 27th June, 1977; assented to by the Governor of the Punjab on 28th June; 
and, published in the Punjab Gazette (Extraordinary) dated 28th June, 1977, paged 909-914. 
2Inserted by the Punjab Finance Ordi nance, 2000 (III of 2000) ; and published in the Punjab Gazette (Extraordinary) , dated 
30.6.2000, pages 587-595, see s.7, which will remain in force under the Provisional Constitution (Amendment) Order 1999 (9 of 
1999), Article 4, notwithstanding the maximu m limit of three months prescribed under Article 128 of the Constitution of the 
Islamic Republic of Pakistan. 
3Inserted by the Punjab Finance (Amendment) Act 2025 (X XIII of 2025),  published in the Punjab Gazette (Extraordinary), 
dated: 02 May 2025, pp. 4249-4250, s. 2. 
amount of tax in treasury, such drawing and disbursing officer or the principal officer 
shall be liable to pay the amount of payable tax to the Excise and Taxation Officer 
who may pass an order to that effect and proceed to recover the same. 
(2c) No recovery under sub -section (2b) shall be made unless the person 
referred to in sub-section (2b) has been provided an opportunity of being heard.] 
(3) The Government may exempt any person or class of persons from the 
payment of the tax. 
(4) Section 11 of the Punjab Finance Act, 1964 (W.P. Act XXXIV of 1964) 
is hereby repealed. 
4
[(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 am ount of 
tax.] 
4. Amendment of West Pakistan Act No.  X of 1958 .– In the Punjab 
Entertainments Duty Act, 1958, in section 3, for sub -section (1), the following shall 
be substituted:– 
“(1) There shall be levied and paid to the Government on all 
payments for a dmission to any entertainment, a duty, hereinafter referred to 
as the 'entertainment duty', at the rate of one hundred and twenty -five per 
cent of such payment including air -conditioning surcharge, if such payment 
exceeds one rupee and at the rate of one h undred per cent if such payment 
does not exceed one rupee: 
Provided that if the amount of duty at the afore-mentioned rates is not a 
multiple of five paisa, the amount of duty shall be rounded to the next higher 
multiple of five paisa: 
Provided further tha t where the proprietor of an entertainment admits 
any person to any place of entertainment without any payment or on payment 
of an amount less than the amount normally charged for admission thereto, 
the entertainment duty shall nevertheless be levied and p aid on the amount 
which would have been normally charged for admission to that place. 
EXPLANATION I.– In case there be different classes in connection with an 
entertainment, the phrase “place of entertainment” means the class to which a 
person is admitted. 
EXPLANATION II.– The fact that any such person as is mentioned in the 
proviso to this sub-section has been admitted to a class more advantageously 
placed for viewing the entertainment than the class of which the others 
making larger payments are admitted,  may be taken into account for 
determining whether the payment made is not that normally charged.” 
5. Amendment of Schedule of Act No.  II of 1899.– In the Stamp Act, 1899, in 
Schedule I, for the existing Article 23, the following shall be substituted:– 
                                                           
4Added by the Punjab Finance  Ordinance, 1978 (XIII of 1978); and published in the Punjab Gazette (Extraordinary), dated 
27.6.1978, pages 773-779, s.8. 
“23. CONVEYANCE as defined by section 2(10) not being a TRANSFER 
charged or exempted under No.62– 
(a) In case of agricultural land.  Rupees four for every rupee  
      one hundred or part thereof of 
the value of land. 
(b) In any other case.   Rupees five and a half for  
      every rupee one hundred 
or part thereof of the value of 
the property. 
6. Application of existing laws.– Where any tax imposed or any duty levied by 
this Act is by way of an addition to any tax imposed or duty levied by or under any 
enactment and rules in force in the Punjab, the procedure provided in such 
enactment and rules 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 under this Act. 
7. 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 Act and 
the rules made thereunder. 
8. Power to make rules.– The Government may make rules for the purposes of 
carrying out the provisions of this Act. 
FIRST SCHEDULE 
(See section 3) 
S.No. Description of Motor Vehicles Annual rate 
of tax 
1 2 3 
1. Motor-Cycles (including motor scooters) and Motor -cycles with 
attachment for propell ing the same by mechanical power not 
exceeding 410 Kg in unladen weight: 
 
 (a) Bicycles not exceeding 90 Kg in unladen weight.  Rs.40/- 
 (b) Bicycles exceeding 90 Kg in unladen weight. Rs.52/- 
 (c) Bicycles drawing a trailer or side-car. Rate for 
appropriate 
cycle plus 
Rs. 12/-. 
 (d) Tricycles. Rs.52/- 
2. Vehicles not exceeding 250 Kg  in unladen weight, adapted and 
used for invalids. 
Rs.6/- 
3. 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.  
Rs.44/- 
 (b) Vehicles with maximum laden capacity upto 2,030 Kg 
(including delivery vans). 
Rs.300/- 
 (c) Vehicles with maximum laden capacity exceed ing 2,030 Kg. 
but not exceeding 4,060 Kg. 
Rs.500/- 
 (d) Vehicles with maximum laden capacity exceeding 4,060 Kg. 
but not exceeding 6,090 Kg. 
Rs.760/- 
 (e) Vehicles with maximum laden capacity exceeding 6,090 Kg. 
but not exceeding 8,120 Kg. 
Rs.1,500/- 
 (f) Vehicles with maximum laden capacity exceeding 8,120 Kg. Rs.2,260/- 
 (g) Vehicles drawing a trailer.  Rate for 
appropriate 
vehicle plus 
Rs.200/- 
4. Vehicles plying for hire and ordinarily used for the transport of 
passengers (taxis and buses)– 
 
S.No. Description of Motor Vehicles Annual rate 
of tax 
1 2 3 
 (a) Tram Cars. Rs.20/- 
 (b) Tricycles propelled by mechanical power (rickshaw cabs) 
with seating capacity of not more than 3 persons. 
Rs.312/- 
 (c) Motor vehicles with a seating capacity of more than 20 
persons plying for hire exclusively within the limits o f a 
Corporation, Municipality or Cantonment. 
Rs.68/- 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. 
Rs.104/- per 
seat. 
 (e) Other vehicles with a seating capacity of not more than 4 
persons. 
Rs.416/- 
 (f) Other vehicles with a seating capacity of more than 4 but not 
more than 6 persons. 
Rs.520/- 
 (g) Other vehicles with a seating capacity of more than 6 
persons. 
Rs.132/- per 
seat. 
 EXPLANATION:– The seating capacity for the purpose of this 
Article does not include the seats meant for driver and conductor. 
 
5. Motor vehicles other than those mentioned above and having–  
 (a) Seating capacity of not more than one person. Rs.104/- 
 (b) Seating capacity of not more than 3 persons. Rs.212/- 
 (c) Seating capacity of more than 3 persons. Rs.76/- per 
seat. 
 NOTE: Station wagons used for private purposes shall be taxed 
under Article 5._________ 
 
 
5
[SECOND SCHEDULE 
(See section 3) 
Sr.No. Class of persons Rate of tax per 
annum(rupees) 
1. Companies registered under the Companies 
Act, 2017 or under the relevant law for the 
time being in force, with paid up capital 
 
 i) Up to rupees 5 million  10,000/- 
 ii) exceeding rupees 5 mi llion but not 
exceeding rupees 50 million  
30,000/- 
 iii) exceeding rupees 50 million but not 
exceeding rupees 100 million  
70,000/- 
 iv) exceeding rupees 100 million but not 
exceeding rupees 200 million 
100,000/- 
 v) exceeding rupees 200 million  100,000/- 
2. Persons other than companies, owning 
factories as defined under the Factories Act, 
1932 and having 
 
 i) employees not exceeding 10  1,500/- 
 ii) employees exceeding 10 but not 
exceeding 25 
5,000/- 
 iii) employees exceeding 25  7,500/- 
6[3. (i)  Persons other than companies owning 
commercial establishments having 10 or more 
employees 
 
(a) Within Metropolitan and Municipal 
Corporation limits  
 
(b)     Others  
 
 
 
6,000/- 
 
4,000/- 
                                                           
5Substituted by the Punjab Finance Act  2019 (XV of 2019), published in the Punjab Gazette ( Extraordinary), dated: 28 June 
2019, pp. 4105-4114, s. 4; It was earlier substituted by the Punjab Finance Ordinance 2000 (III of 2000)  ; and published in the 
Punjab Gazette (Extraordinary), dated 30.6.2000, pages 587 -595, see s.7 , which will remain in for ce 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. 
6 Substituted by the Punjab Finance Act 2021 (XIX of 2021), published in the Punjab Gazette (Extraordinary), dated: 30th June 
2021, pp. 10047-10050 s.4. 
Sr.No. Class of persons Rate of tax per 
annum(rupees) 
 ii) All other commercial establishments 
other than wholesalers and retailers  
2,000/-] 
4. Persons engaged in the import or export of 
goods who, during the preceding financial 
year, imported or exported goods of the 
value 
 
 i) exceeding rupees 1 lac but not 
exceeding rupees 1 million 
2,000/- 
 ii) exceeding rupees 1 mil lion but not 
exceeding rupees 5 million 
3,000/- 
 iii) exceeding rupees 5 million 5,000/- 
5. Contractors, builders and property 
developers, who during the preceding 
financial year supplied to the Federal or the 
Provincial Government or a company or a 
factory or a commercial establishment or an 
autonomous or a semi autonomous 
organization or any Local Authority; goods, 
commodities and services of the value: 
 
 i) not exceeding rupees 1 million  1,000/- 
 ii) exceeding rupees 1 million but not 
exceeding rupees 10 million  
6,000/- 
 iii) exceeding rupees 10 million but not 
exceeding rupees 50 million  
10,000/- 
 iv) exceeding rupees 50 million  20,000/- 
6. Persons engaged in various professions 
and providing different services such as: 
 
 i) Medical Consultan ts or 
Specialists/Dental Surgeons  
5,000/- 
 ii) Registered Medical Practitioners  4,000/- 
 iii) Others including Homoeopaths, 
Hakeems and Ayuervedics– 
 
(a)  Within Metropolitan and 
 
 
3,000/- 
 
Sr.No. Class of persons Rate of tax per 
annum(rupees) 
Municipal Corporation  limits 
 
(b)  Others 
1,000/- 
 iv) Auditing firms (per professionally 
qualified person) 
(a) Within Metropolitan and 
Municipal Corporation limits 
(b) Others 
 
 
6,000/- 
 
4,000/- 
 v) Management and Tax Consultants 
Architects, Engineering, Technical and 
Scientific Consultants– 
(a) Within Metropolita n and 
Municipal Corporation limits  
(b) Others 
 
 
6,000/- 
 
4,000/- 
 vi) Lawyers  1,000/- 
 vii) (a) Members of Stock  Exchanges 10,000/- 
  (b) Money Changer: 
 (i) Within Metropolitan  
 and Municipal   
 Corporation    limits  
 (ii) Others 
 
6,000/- 
 
 
2,000/- 
  (c) Motorcycle/Scooter  dealers– 
 
 (i) Within Metropolitan and 
Municipal Corporation 
limits.  
 (ii) Others  
 
10,000/- 
 
 
6,000/- 
  (d) 7[Motor Vehicle]  Dealers and 
Real  Estate Agents– 
 
                                                           
7 Substituted for word “Motor Car”  by the Punjab Finance Act 2021  (XIX of 2021), published in the Punjab Gazette 
(Extraordinary), dated: 30th June 2021, pp. 10047-10050 s.4. 
Sr.No. Class of persons Rate of tax per 
annum(rupees) 
(i) Within Metropolitan and 
Municipal Corporation limits  
(ii) Others  
 
20,000/- 
 
10,000/- 
  (e) Recruiting Agents– 
(i) Within Metropolitan and 
Municipal Corporation 
limits  
(ii) Others  
 
20,000/- 
 
10,000/- 
 viii) Carriage of goods and passengers by 
road: 
(i) Within Metropolitan and 
Municipal Corporation 
limits  
(ii) Others 
 
 
4,000/- 
 
 
2,000/- 
 ix) Health Clubs and Gymnasiums– 
(i) Within Metropolitan and 
Municipal Corporation 
limits  
(ii) Others  
 
4,000/- 
 
2,000/- 
 x) Jewelers, departmental stores, 
electronic goods stores, cable 
operators, printing presses and 
pesticide dealers 
2,000/- 
 xi) Tobacco venders– 
Wholesalers 
 
4,000/- 
7. Franchisee, Authorized dealers/Agents and 
distributors 
5,000/- 
                                                                                                                                                                                     
 
Sr.No. Class of persons Rate of tax per 
annum(rupees) 
8. Property Developers / Builders & Marketing 
Agent/Company engaged in the 
development marketing and management of 
residential, commercial or industrial 
properties 
50,000/- 
9. Hotels, Hostels (except hostels owned and 
operated by an educational institution itself) 
/ Guest Houses / Motels / Resorts providing 
lodging facilities  
5,000/- 
10. Restaurants / Eateries / Fast Food Po ints / 
Ice Cream Parlors / Bakeries / Confectioners 
/ Sweets Shops with air conditioning facility 
5,000/- 
8[11. Persons who are engaged in a profession, trade, 
calling or employment who were assessed to pay 
income tax during the preceding financial years 
200/-] 
 
                                                           
8 Inserted by the Punjab Finance Act 2021  (XIX of 2021), published in the Punjab Gazette (Extraordinary), dated: 30th June 
2021, pp. 10047-10050 s.4.