PUNJAB FINANCE ACT, 1968

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THE PUNJAB FINANCE ACT, 1968 
(III of 1968) 
CONTENTS 
1. Short title commencement and extent 
2. Surcharge on Agricultural Income-tax in certain Districts 
3. Tax on cinemas 
4. Surcharge on motor vehicles tax 
5. Tax on railway fares and freights 
6. Amendment of Section 12 of W.P.Act XXXIV of 1964 
7. Penalty 
8. Application of existing laws 
9. Bar of suits in Civil Courts 
10. Power to make rules 
SCHEDULES 
1. FIRST SCHEDULE 
2. SECOND SCHEDULE 
TEXT 
1
THE 
2
[PUNJAB] FINANCE ACT, 1968 
(III of 1968) 
[29th June, 1968] 
An 
Act 
to continue and levy certain taxes and surcharges in the Province of 
3
[the Punjab]. 
Preamble.– WHEREAS it is expedient to continue and levy certain taxes and 
surcharges in the Province of 
4
[the Punjab]; 
It is hereby enacted as follows:– 
1. Short title , commencement and extent .– (1) This Act may be called the 
5
[Punjab] Finance Act, 1968. 
(2) It shall come into force on and from the first day of July, 1968. 
(3) It shall extend, unless otherwise specified hereinafter, to the whole of 
6
[the Punjab], except the Tribal Areas. 
2. Surcharge on Agricultural Income-tax in certain Districts.– (1) There shall 
be levied and collected from every owner of land which is assessed to agricultura l 
income-tax in the Districts of 
7
[* * *] Compbellpur
8
, Dera Ghazi Khan, Gujranwala, 
Gujrat, Jhelum, Jhang, Lahore
9
, Lyallpur
10
, Mianwali, Multan
11
, Muzaffargarh, 
Rawalpindi, Sahiwal, Sargodha, Sheikhupura and Sialkot, on the land -revenue 
                                                           
1For statement of o bjects and reasons, see Gazette of West Pakistan (Extraordinary), 1968, dated 11th June, 1968, pages 
2153-U to 2153-AA. 
This Act was passed by the Provincial Assembly West Pakistan on 29th June, 1968; assented to by the Governor of West 
Pakistan on 29th Ju ne, 1968; and published in the Gazette of West Pakistan (Extraordinary), dated 29th June, 1968, pages 
2239-2245. 
2Substituted for the words “West Pakistan” by the Punjab Laws (Adaptation) Order, 1974 (P.O. No.1 of 1974),w.e.f. 14.8.1973, 
Article 2 and the Schedule; and published in the Punjab Gazette(Extraordinary), dated 20.11.1974, pages 1425-A to 1425-PP. 
3Substituted for the words “West Pakistan” by the Punjab Laws (Adaptation) Order, 1974 (P.O. No.1 of 1974),w.e.f. 14.8.1973, 
Article 2 and the Schedule; and published in the Punjab Gazette(Extraordinary), dated 20.11.1974, pages 1425-A to 1425-PP. 
4Substituted for the words “West Pakistan” by the Punjab Laws (Adaptation) Order, 1974 (P.O. No.1 of 1974),w.e.f. 14.8.1973, 
Article 2 and the Schedule; and published in the Punjab Gazette(Extraordinary), dated 20.11.1974, pages 1425-A to 1425-PP. 
5Substituted for the words “West Pakistan” by the Punjab Laws (Adaptation) Order, 1974 (P.O. No.1 of 1974),w.e.f. 14.8.1973, 
Article 2 and the Schedule; and published in the Punjab Gazette(Extraordinary), dated 20.11.1974, pages 1425-A to 1425-PP. 
6Substituted for the words “West Pakistan” by the Punjab Laws (Adaptation) Order, 1974 (P.O. No.1 of 1974),w.e.f. 14.8.1973, 
Article 2 and the Schedule; and published in the Punjab Gazette(Extraordinary), dated 20.11.1974, pages 1425-A to 1425-PP. 
7Deleted t he words  and commas  “Bannu, Dera Ismail Khan, Hazara, Mardan, Kohat, Peshwar ,” by the Punjab Laws 
(Adaptation) Order, 1974 (P.O. No.1 of 1974),w.e.f. 14.8.1973, Article 2 an d the Schedule; and published in the Punjab 
Gazette(Extraordinary), dated 20.11.1974, pages 1425-A to 1425-PP. 
8Now “Attock”. 
9Now bifurcated into “Lahore and Kasur” Districts. 
10Now “Faisalabad”. 
11Now bifurcated into Multan and Vehari Districts. 
payable in the agricultural year 1967-68, an additional amount of agricultural income-
tax by way of surcharge at the rate specified in the First Schedule. 
Explanation.– For purposes of this section, “agricultural year” means the agricultural 
year as defined in the West Pakistan Land Revenue Act, 1967
12
. 
(2) The provisions of 
13
[* * *] the Punjab Agricultural Income -Tax Act, 
1951
14
, shall, so far as may be, apply to the assessment, collection and recovery of 
the surcharge imposed under this section. 
3. Tax on cinemas. – There shal l be levied and collected a tax on cinemas 
payable by the owner or management thereof at the following rates for the financial 
year 1968-69:– 
(i) In the case of a cinema classed as a first class cinema. 
One thousand rupees. 
(ii) In the case of a cinema classed as a second class cinema.  
Five hundred rupees. 
(iii) In the case of a cinema classed as a third class cinema. 
One hundred rupees. 
4. Surcharge on motor 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 in 
15
[the Punjab], a surcharge on such tax, payable by the person by whom the 
tax is payable, at the following rates for the financial year 1968-69:– 
(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. 
5. Tax on railway fares and freights .– Until the 30th day of June, 1969, there 
shall be levied and paid on railway fares and  freights a tax according to the scale set 
out in the Second Schedule. 
6. Amendment of section 12 of W.P. Act XXXIV of 1964.– In section 12 of the 
16
[Punjab] Finance Act, 1964 (XXXIV of 1964), for sub -section (4), the following sub -
section shall be substituted, namely:- 
“(4) The proceeds of the cess shall be utilised for– 
(i) special maintenance and development of roads and bridges and 
special plant protection services in the areas comprising the Mill 
Zones; 
                                                           
12W.P. Act XVII of 1967. 
13Deleted t he words “the North -West Frontier Province Agricultu ral Income -Tax Act, 1948, and” by the Punjab Laws 
(Adaptation) Order, 1974 (P.O. No.1 of 1974),w.e.f. 14.8.1973, Article 2 and the Schedule; and published in the Punjab 
Gazette(Extraordinary), dated 20.11.1974, pages 1425-A to 1425-PP. 
14Punjab X of 1951.  
15Substituted ibid., for “West Pakistan”. 
16Substituted by the Punjab Laws (Adaptation) Order, 1974 (Pb A.O. 1 of 1974), for West Pakistan. 
(ii) maintenance and development of such roads and  bridges 
outside the Mill Zones, as in the opinion of Government, are 
primarily used for sugar-cane traffic; and 
(iii) other activities directed towards the development of sugarcane 
production.”. 
7. Penalty.– If the person responsible for the payment of th e tax under section 3 
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. 
8. Application of existing law s.– Where any tax or surcharge imposed by this 
Act is by way of an addition to, or a surcharge on, any existing tax imposed by or 
under an enactment in force in 
17
[the Punjab ], the procedure provided in such 
enactment and the rules framed thereunder for the  assessment, collection and 
recovery of such tax, shall, so far as applicable, apply to the assessment, collection 
and recovery of the additional tax or surcharge. 
9. 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 surcharge made under this 
Act and the rules thereunder or any penalty imposed under section 7. 
10. Power to make rules .– (1) The Provincial Government may make rules for 
carrying into effect the purposes of this Act, and such rules may, among other 
matters, prescribe the procedure for the assessment, collection and payment of any 
tax 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 deemed to have been made under the 
corresponding provisions of the 
18
[Punjab] Finance Act, 1967, shall, so far as may be, 
be continued and be deemed to have been made under this Act. 
                                                           
17Ibid. 
18Substituted by the Punjab Laws (Adaptation) Order, 1974 (Pb A.O. 1 of 1974), for “West Pakistan”. 
FIRST SCHEDULE 
(See section 2) 
 Surcharge 
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. 
Rupees twelve. 
Where the total land-revenue payable exceeds Rs. 499 but does not 
exceed Rs. 749. 
Rupees twenty- 
four. 
Where the total land-revenue payable exceeds Rs. 749 but does not 
exceed Rs. 999. 
Rupees fifty. 
Where the total land-revenue payable exceeds Rs. 999 but does not 
exceed Rs. 1,999. 
Rupees one 
hundred. 
Where the total land-revenue payable exceeds Rs. 1,999 but does not 
exceed Rs. 4,999. 
Rupees two 
hundred and 
fifty. 
Where the total land-revenue payable exceeds Rs. 4,999 but does not 
exceed Rs. 9,999. 
Rupees five 
hundred. 
Where the total land-revenue payable exceeds Rs. 9,999. Rupees one 
thousand. 
 
SECOND SCHEDULE 
(See section 5) 
PART–I 
Fares (Passenger)  Amount of Tax. 
On a first class ticket 50 paisa. 
On a second class ticket 25 paisa. 
On an inter class ticket 12 paisa. 
On a third class ticket 6 paisa. 
Provided that no tax shall be levied where the fare does not exceed Rs.3. 
PART–II 
Freight (Goods) Tax 
Where the freight on any consignment does not exceed Rs.3. Nil. 
Where the freight on any consignment exceeds Rs.3 but does not 
exceed Rs.10. 
Six paisa. 
Where the freight on any consignment exceeds Rs.10 but does not 
exceed Rs.25. 
Twelve paisa. 
Where the freight on any consignment exceeds Rs.25but does not 
exceed Rs.50. 
Twenty-five paisa. 
Where the freight on any consignment exceeds Rs.50 but does not 
exceed Rs.75. 
Fifty paisa. 
Where the freight on any consignment exceeds Rs.75 but does not 
exceed Rs.100. 
One rupee. 
Where the freight on any consignment exceeds Rs.100 but does not 
exceed Rs.150. 
Two rupees. 
Where the freight on any consignment exceeds Rs.150 but does not 
exceed Rs.225. 
Three rupees. 
Where the freight on any consignment exceeds Rs.225 but does not 
exceed Rs.300. 
Four rupees. 
Where the freight on any consignment exceeds Rs.300 Four rupees plus 
one rupee for every 
hundred rupees in 
excess of three 
hundred rupees of 
freight.