PUNJAB INFRASTRUCTURE DEVELOPMENT CESS ACT 2015

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THE PUNJAB INFRASTRUCTURE DEVELOPMENT CESS 
ACT 2015 
(XXX of 2015) 
CONTENTS 
CHAPTER I 
PRELIMINARY 
1. Short title, extent and commencement 
2. Definitions 
CHAPTER II 
SCOPE OF CESS 
3. Scope of cess and allied matters 
4. Person liable to pay cess 
5. Payment of cess 
5A.  Refund 
6. Exemptions 
CHAPTER III 
OFFENCES AND PENALTIES 
7. Default surcharge 
8. Penalty 
9. Waiver of default surcharge or penalty 
CHAPTER IV 
MISCELLANEOUS 
10. Application of provisions of other laws 
10A. Appointment of Cess Officer 
11. Power to make rules 
12. Bar on adjustment 
13. Intersystem connectivity 
13A. Establishment of pickets, check-posts or monitoring stations 
13B. Posting and powers of officers 
13C. Assistance by other authorities and agencies 
13D. Electronic monitoring  
13E. Offences and penalties 
13F. Power to entrust functions 
14. Savings  
 
TEXT 
1
THE PUNJAB INFRASTRUCTURE DEVELOPMENT CESS ACT 2015 
(XXX of 2015) 
[26th June 2015] 
An 
Act 
to levy and collect infrastructure development cess on transportation of goods 
manufactured, produced or consumed in, imported into or exported out of the 
Punjab. 
It is necessary to levy and collect infrastructure development cess on 
transportation of goods manufactured, produced or consumed in, imported i nto or 
exported out of the Punjab; to provide resources for the maintenance, development 
and improvement of the infrastructure required, amongst other things, to cater for the 
load of goods traffic; and to deal with other purposes; 
Be it enacted by Provincial Assembly of the Punjab as follows: 
CHAPTER I 
PRELIMINARY 
1. Short title, extent and commencement .– (1) This Act may be cited as the 
Punjab Infrastructure Development Cess Act 2015. 
(2) It extends to whole of the Punjab. 
(3) It shall come into force from the 1st day of July 2015. 
2. Definitions.– In this Act: 
(a) “Authority” means the Punjab Revenue Authority established under the 
Punjab Revenue Authority Act 2012 (XLIII of 2012); 
(b) “cess” means the infrastructure cess levied and collected under the Act 
and includes default  surcharge or penalty or any other sum payable 
under the Act or the rules; 
(c) “Customs Act” means the Customs Act, 1969 (IV of 1969), and rules 
made or notifications issued under that Act; 
2[(ca) “exported out of the Punjab” means the transportation of goods out of 
the territorial limits of the Punjab;] 
 
(d)  “FBR” means the Federal Board of Revenue established under the 
Federal Board of Revenue Act, 2007 (IV of 2007); 
                                                                 
1This Act was passed by the Punjab Assembly on 2 4 June 2015; assented to by the Governor of the Punjab on 26 June 2015; 
and, was published in the Punjab Gazette (Extraordinary), dated 26 June 2015, pp. 7369-7372 
2Inserted by the Punjab Infrastructure Development Cess (Amendment) Act 2026 (XXXV of 2026),  published in the Punjab 
Gazette (Extraordinary) dated 13.05.2026, pp. 6057-6059, s. 2(a).  
(e) “goods” means goods classifiable under the First Schedule to the 
Customs Act and includes the goods defined under that Act; 
(f) “Government” means Government of the Punjab; 
1[(fa)  “imported into the Punjab” means the transportation of imported goods 
into the territorial limits of the Punjab, and includes transportation of 
imported goods through the terr itorial limits of the Punjab to any other 
province of Pakistan; 
Explanation: A goods declaration having an address within the Punjab 
or where the registered business address of the importer, consignee, 
or owner of the goods is situated in the Punjab, shall  be deemed to 
constitute import into the Punjab for the purposes of levying and 
collection of cess;] 
(g) “infrastructure” includes roads, streets, bridges, culverts, lights on 
passage, beaches,  public  parks,  place  of  public  recreation  or  
enjoyment  and  convenience, eating places, landscape, forests, 
fisheries, delta conservation, lakes, breeding places of aquatic life, 
wildlife and its sanctuaries, public schools, vocational and technical 
training centers and projects, libraries, museums and similar 
institutions controlled and financed by the Punjab, control of traffic for 
smooth flow and other movement of goods, public order, police force, 
patrol for safety of goods, stands for loading and unloading of goods, 
parking places, markets, water supply, hospi tals and dispensaries and 
development, improvement, maintenance and protection of such 
infrastructure; 
(h) “person” includes: 
(i) an individual; 
(ii) an association of persons; 
(iii) a company incorporated, formed, organized or established in 
Pakistan or elsewhere; 
(iv) the Federal Government; 
(v) a Provincial Government; 
(vi) a local authority in Pakistan; or 
(vii) a foreign government, political subdivision of a foreign 
government, or public international organization; 
2[(ha)  “regulations” means the regulations framed under the Act;] 
(i) “rules” means the rules made under the Act; 
(j) “Sales Tax Act” means the Sales Tax Act, 1990 (VII of 1990); and 
1
[(k) “value” means the value of goods being imported or exported, as 
determined by an officer of customs for purposes of the Customs Act, 
                                                                 
1 Inserted by the Punjab Infrastructure Development Cess (Amendment) Act 2026 (XXXV of 2026), published in the Punjab 
Gazette (Extraordinary) dated 13.05.2026, pp. 6057-6059, s. 2(b). 
2Added by the Punjab Infrastructure Development Cess (Amendment) Act 2026 (XXXV of 2026), published in the Punjab 
Gazette (Extraordinary) dated 13.05.2026, pp. 6057-6059, s. 2(c).  
1969, provided t hat in case of goods manufactured, produced or 
consumed in Pakistan, the value shall be determined by reference to 
the value determined under the Sales Tax Act for purposes of levy and 
payment of sales tax.] 
CHAPTER II 
SCOPE OF CESS 
3. Scope of cess and allied matters.– 2[(1) Subject to the provisions of this Act 
and the rules, there shall be levied and collected a cess on all goods manufactured, 
produced, consumed, imported into the Punjab or exported out of the Punjab at the 
rate of 0.90% of the total value of such goods as assessed for customs purposes, 
whether customs clearance of those goods occurs within the Punjab or not.] 
(2) The cess shall be deposited in the Provincial Consolidated Fund to be 
utilized by the Government for maintenance and development of i nfrastructure and 
other activity ancillary to the infrastructure in such manner as may be deemed proper 
by the Government. 
4. Person liable to pay cess .– (1) Every person manufacturing, producing or  
consuming goods and every person importing goods into the Pu njab through any 
port, dry -port, airport or custom station including bonded warehouse and every 
person exporting goods out of the Punjab shall be liable to pay the cess. 
(2) Nothing contained in this section shall prevent the collection of cess 
from a different person if that person is made separately, jointly or severally liable for 
payment of the cess under this Act or the rules. 
5. Payment of cess.– (1) In case of goods imported into or exported out of the  
Punjab, cess shall be payable in the same manner and at  the same time as if it were 
a customs duty regardless whether or not the goods are liable to such duty. 
(2) In case of goods manufactured, produced or consumed in the Punjab, 
cess shall be payable in the same manner and at the same time as if it were a sales 
tax payable under the Sales Tax Act. 
(3) The amount of cess shall be deposited in such head of account as may 
be specified by the Government. 
(4) Notwithstanding anything contained in this section, the Authority may, 
in respect of any goods, category or class of g oods and subject to such conditions, 
restrictions or limitations, if any, specify any other manner or time or mode of 
payment of cess. 
3
[5A. Refund .– Notwithstanding anything contained in this Act, the Authority or its 
authorized officer, subject to such c onditions and restrictions as may be prescribed, 
                                                                                                                                                                                                       
1Substituted by the Punjab Finance Act 2016 (XXXV of 20 16), published in the Punjab Gazette (Extraordinary), dated: 
29.06.2016, pp. 6083-6092, s.9: it came into force on 1 July 2016 
2Substituted by the Punjab Infrastructure Development Cess (Amendment) Act 2026 (XXXV of 2026), published in the Punjab 
Gazette (Extraordinary) dated 13.05.2026, pp. 6057-6059, s. 3.  
3Inserted by the Punjab Infrastructure Development Cess (Amendment)  Act 2025 (XIII of 2025 ), published in the Punjab 
Gazette (Extraordinary), dated: 18 March 2025, p. 3557, s. 2. 
may allow refund of cess claimed to have been paid through inadvertence, error or 
misconstruction.] 
6. Exemptions.– (1) Notwithstanding anything contained in sections 3 and 5 
and unless otherwise specified or d irected by the Government through a notification 
in the official Gazette, the goods exported ou t of the Punjab 1[,] the goods 
manufactured, produced or consumed (other than goods imported on payment of 
cess) in the Punjab  2[and the goods exempted by the Fed eral Government from 
payment of duties and taxes for import] shall be exempt from cess. 
(2) The cess shall not be payable in respect of imported fresh food items 
like fresh vegetables and fresh fruits. 
(3) The Authority may, with the approval of the Government and  subject to 
such conditions as it may impose, by the notification in official Gazette, exempt any 
goods, or category or class of goods from the payment of whole or any part of the 
cess: 
 3[Provided that where the Government considers appropriate and necess ary, 
it may allow exemption from payment of cess from any previous date as may be 
specified in the notification.] 
CHAPTER III 
OFFENCES AND PENALTIES 
7. Default surcharge.– (1) Where any person has not paid any amount of cess 
due under this Act, he shall, i n addition to the cess due or any other penalties 
payable under the Act, pay default surcharge at the rate of two percent of the 
payable amount of the cess per month. 
(2) Where necessary, the amount of default surcharge shall be prorated 
but in a case the period of default is less than one month, the amount of default 
surcharge shall not be prorated. 
Explanation.– For the purposes of this section, the ces s due does not include 
penalty. 
8. Penalty.– Where a person has failed to pay any amount of cess, he shall be 
liable to pay a penalty not exceeding ten percent of the amount of cess due and 
payable. 
9. Waiver of default surcharge or penalty .– The Authority may, subject to 
such conditions as it deems appropriate, waive the payment of default surcharge on 
cess under section 7 or penalty under section 8 in any case or class of cases.  
CHAPTER IV 
                                                                 
1For the word “and” substituted by the Punjab Finance Act 2021 (XIX of 2021), published in the Punjab Gazette (Extraordinary), 
dated: 30th June 2021, pp. 10047-10050 s.6. 
 
2Inserted by the Punjab Finance Act 2021  (XIX of 2021), published in the Punjab Gazette (Extraordinary), d ated: 30th June 
2021, pp. 10047-10050 s.6. 
 
3Added by the Punjab Finance Act 2020 (VIII of 2020), published in the Punjab Gazette (Extraordinary), dated: 29 June 2020, 
pp. 4353-4359, s. 6. 
MISCELLANEOUS 
10. Application of provisions of other laws.– (1) In case of goods imported into 
or exported out of the Punjab, the Customs Act shall, as nearly as possible, apply t o 
the collection, payment and administration of the cess in so far as it relates to: 
(a) manner, time and mode of payment; 
(b) declarations, processing and management thereof; 
(c) keeping of records, accounts and documents; 
1[(d) ****] 
2[(e) ****] 
(f) all other ancillary matters. 
(2) Where required in case of goods manufactured, produced or 
consumed in the Punjab, the Sales Tax Act and the rules made and notifications, 
orders and instructions issued under the Sales Tax Act shall, as nearly as possible, 
apply to collection and payment of cess under this Act in so far as they relate to the 
matters covered in subsection (1). 
3[(2a) Notwithstanding anything contained in this Act, the Punjab Sales Tax 
on Services Act 2012 (XLII of 2012), and the rules made thereunder, shall, as nearly 
as possible, apply in so far as it relates to: 
(a) seeking information or requisitioning record; 
(b) issuance of show cause notice; 
(c) adjudication including appeal and reference; 
(d) imposition of penalty and prosecution; 
(e) recovery; 
(f) enforcement; and 
(g) all other ancillary matters thereto.] 
(3) This Act and the rules shall be treated as fiscal law for the purpose of 
clause (h) of section 2 of the Punjab Revenue Authority Act 2012 (XLIII of 2012). 
4[10A. Appointment of Cess Officer .– The Authorit y may, by notification in the 
official Gazette, designate its one or more officers as Cess Officer for the purposes 
of this Act.] 
                                                                 
1Omitted by the Punjab Infrastructure Development Cess (Amendment) Act 2026 (XXXV of 2026), published in the Punjab 
Gazette (Extraordinary) dated 13.05.2026, pp. 6057-6059, s. 49(a). 
2Omitted by the Punjab Infrastructure Development Cess (Amendment) Act 2026 (XXXV of 2026), published in the Punjab 
Gazette (Extraordinary) dated 13.05.2026, pp. 6057-6059, s. 4(a). 
3Inserted by the Punjab Infrastructure Development Cess (Amendment) Act 2026 (XXXV of 2026), published in the Punjab 
Gazette (Extraordinary) dated 13.05.2026, pp. 6057-6059, s. 4(b).  
4Inserted by the Punjab Infras tructure Development Cess (Amendment) Act 2026 (XXXV of 2026), published in the Punjab 
Gazette (Extraordinary) dated 13.05.2026, pp. 6057-6059, s. 5. 
11. Power to make rules 1[and frame regulations].– (1) The Authority may, with 
the approval of the Government and by notification in the official Gazette, make rules 
for carrying out the purposes of this Act. 
(2) The Government shall lay all the rules made during a financial year in 
Provincial Assembly of the Punjab at the time of presentation of the annual budget 
for the next financial year. 
2[(2a) The Authority may, by notification in the official Gazette, frame 
regulations for carrying out the purposes of this Act.] 
(3) The Authority may issue  3[notification,] general orders, circulars or 
instructions, directions or clarifications to carry  out the purposes of this Act or the 
rules4[:] 
5[Provided that in case of issuance of a notification, it shall be published in the 
official Gazette.] 
12. Bar on adjustment.– The amount of cess payable or paid under this Act shall 
not be adjusted against any other tax, levy or cess payable to the Government under 
any other law, and any other tax, levy or cess shall not be adjusted against any 
amount of the cess payable under the Act. 
13. Intersystem connectivity.– The Authority may enter into such arrangements 
for real time connectivity of its computerized system with the system of FBR or any 
other department, organization, institution or authority as it may deem proper for the 
purpose of regular or efficient monitoring of the collections and receipts of the cess. 
6[13A. Establishment of pickets, check -posts or monitoring stations .– The 
Authority may, by notification in the official Gazette, establish pickets, check -posts 
or monitoring stations at such territorial limits of the Punjab, areas, entries, exit 
points in the Punjab, or at any other strategic locations, as it may deem necessary, 
for the purpose of monitoring, verification and ensuring proper collection of cess 
and may deploy its officers for such purposes in coordination with the concerned 
enforcement agencies. 
 
13B. Posting and powers of officers .– (1) The Authority may post its officers 
and officials on each picket or check -post or monitoring station as it may deem 
                                                                 
1Inserted by the Punjab Infrastructure Development Cess (Amendment) Act 2026 (XXXV of 2026), published in the Punjab 
Gazette (Extraordinary) dated 13.05.2026, pp. 6057-6059, s. 6(a).  
2Inserted by the Punjab Infrastructure Development Cess (Amendment) Act 2026 (XXXV of 2026), published in the Punjab 
Gazette (Extraordinary) dated 13.05.2026, pp. 6057-6059, s. 6(b). 
3Inserted by the Punjab Infrastructure Development Cess (Amendment) Act 2026 (XXXV of 2026), published in the Punjab 
Gazette (Extraordinary) dated 13.05.2026, pp. 6057-6059, s. 6(c). 
4Substituted for "full stop" by the Punjab Infrastructure Development Cess (Amendment) Act 2026 (XXXV of 2026), published in 
the Punjab Gazette (Extraordinary) dated 13.05.2026, pp. 6057-6059, s. 6(c).  
5Inserted by the Punjab Infrastructure Development Cess (Amendment) Act 2026 (XXXV of 2026), published in the Punjab 
Gazette (Extraordinary) dated 13.05.2026, pp. 6057-6059, s. 6(c).   
6 Inserted by the Punjab Infrastructure Development Cess (Amendment) Act 2026 (XXXV of 2026), published in the Punjab 
Gazette (Extraordinary) dated 13.05.2026, pp. 6057-6059, s. 7.   
necessary for the purposes of this Act, and designate an officer as officer in -
charge of such picket or check-post or monitoring station or all of them.  
 (2) Notwithstanding the generality of the provisions of sub -section (1),  
the officers and officials  shall have the powers to stop, inspect, verify, and record 
the movement of any goods liable to  cess, and may require production of such 
documents or evidence as may be necessary to ensure proper assessment and 
collection of the cess. 
13C. Assistance by other authorities and agencies .– The officers may, where 
necessary, seek assistance of the custom s authorities, law enforcement agencies 
or any other public or private bodies for the purposes of coordination, data sharing, 
verification or operational support in connection with establishment, functioning 
and enforcement activities at such pickets, check-posts or monitoring stations. 
13D. Electronic monitoring.– The Authority may make electronic surveillance, 
tracking, or data transmission systems at the pickets, check -posts, or monitoring 
stations to ensure transparency, accountability and monitoring o f the movement of 
goods liable to cess. 
13E. Offences and penalties .– Any person who obstructs, hinders or resists 
against the lawful functions of an officer at any picket, check -post, or monitoring 
station, or who evades, attempts to evade, or abets evas ion of cess, or furnishes 
false or misleading information regarding goods liable to cess, shall be liable to a 
penalty which shall be at least equal to the amount of leviable cess and may 
extend to ten times the cess leviable on such goods, in addition to any other action 
that may be taken under this Act. 
13F. Power to entrust functions .– The Authority may, by notification in the 
official Gazette, entrust the management, supervision or operation of any picket, 
check-post or monitoring station established u nder this Act to any department, 
authority, agency or organization of the Government, subject to such conditions, 
limitations and directions as it may specify in the notification.] 
14. Savings.– Where the Government or the Authority takes any action, makes  
any decision or orders, issues any instructions, directions, clarifications or 
notifications in pursuance of or in exercising of powers conferred under any provision 
of any law in respect of any matter relating to the cess and allied issues covered 
under this Act or the rules, such actions, decisions, orders, instructions, directions, 
clarifications and notifications shall be deemed to have been validly issued to serve 
the purposes of this Act and the rules.