PUNJAB THAL (INCREASE IN VALUE) ORDINANCE, 1978

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THE PUNJAB THAL (INCREASE IN VALUE) ORDINANCE, 
1978 
(X of 1978) 
CONTENTS 
1. Short title and commencement 
2. Definitions 
3. Imposition of Tax 
4. Persons by whom tax is to be paid 
5. Preparation of the statement of demand 
6. Recovery of arrears 
7. Instalments 
8. Exemptions 
9. Power to withhold irrigation 
10. Rule making power 
11. Validation 
12. Repeal of Punjab Act VI of 1940 and continuance of action taken 
thereunder 
 
TEXT 
1
THE PUNJAB THAL (INCREASE IN VALUE) ORDINANCE, 1978 
(X of 1978) 
[29th April, 1978] 
An 
Ordinance 
 to provide for the levy of a tax on lands the value of which has been enhanced due 
to irrigation from the Thal Canal. 
Preamble.– WHEREAS it is expedien t to provide for the levy of a tax on lands, 
which have already risen or are likely to rise in value as a result of the introduction of 
irrigation in the Thal area; 
 AND WHEREAS the Governor of the Punjab is satisfied that circumstances 
exist which render immediate legislation necessary; 
 NOW, THEREFORE, in pursuance of the Proclamation of the fifth day of July, 
1977, read with the Laws (Continuance in Force) Order (CMLA Order No.1 of 1977), 
the Governor of the Punjab is pleased to make and promulgate the f ollowing 
Ordinance:– 
1. Short title and commencement. – (1) This Ordinance may be called the 
Punjab Thal (Increase in Value) Ordinance, 1978. 
 (2) It shall come into force at once. 
2. Definitions.– In this Ordinance, unless there is anything repugnant in th e 
subject or context:– 
(a) “Collector” means Collector of a District and includes a Deputy 
Commissioner and any officer specially appointed by the Government 
to perform the functions of a Collector under this Ordinance; 
(b) “Government” means the Government of the Punjab; 
(c) “Prescribed” means prescribed by rules; 
(d) “Tax” means the tax imposed by this Ordinance; and  
(e) “Thal Canal” means and includes all canals, Channels, reservoirs 
constructed, maintained or controlled by Government for the supply or 
storage of water from the Head Works, near Kala-Bagh on the Indus. 
3. Imposition of Tax. – (1) Except as hereinafter provided, a tax shall be levied 
on all such lands as may from time to time be notified by the Board of Revenue as 
culturable commanded area and to which irrigation facilities have actually been 
extended. 
 (2) The tax shall be levied at such rate or rates not exceeding sixty rupees 
on each acre, as may be specified by the Board of Revenue. 
                                                 
1This Ordinance was promulgated by the Governor of the Punjab on 25th April, 1978; and was published in the Punjab Gazette 
(Extraordinary), dated 29th April, 1978, pages 389-392. 
 
4. Persons by whom tax is to be paid. – (1) Except as pr ovided hereunder the 
tax shall be paid by the owners of the land. 
 (2) When the land is mortgaged with possession, the tax shall be paid by 
the mortgagee but the tax so paid shall not be a charge on the mortgage money. 
 (3) When the land is held by an occu pancy tenant, or when there are 
superior and inferior owners of the same land , the tax shall be paid by the owners or 
the occupancy tenant in such shares as may be proportionate to the value of their 
respective interest in the land. 
5. Preparation of the statement of demand.– (1) After such enquiry, if any, as 
may be prescribed with regard to the classification of land or the proper distribution 
of the tax, the Collector shall prepare a statement of demand, containing full 
particulars of the amount which each person having rights in the land is liable to pay. 
 (2) In distributing the tax between different owners or between owners and 
occupancy tenants of the same land, due regard shall be had to the prevailing local 
practice in respect of the division of pro duce or capital value between such persons 
in respect of that land. 
 (3) The statement of demand prepared under sub -section (1) shall be 
published in such manner as may be prescribed. 
6. Recovery of arrears .– (1) After the expiry of such period as may be 
prescribed for the receipt of objections a statement of account shall be prepared in 
respect of each person from whom the tax is due and shall be served upon him in 
such manner as may be prescribed. 
 (2) A statement of account certified by an officer exerci sing the powers of 
Revenue Officer under the Punjab Land Revenue Act, 1967, shall be conclusive 
proof of the existence of an arrear of the tax, of its amount and of the person who is 
the defaulter, and any such arrear shall be recoverable as if it were an arrear of land 
revenue in the manner provided by or under the said Act. 
7. Installments.– (1) The tax shall be payable on demand, but the Board of 
Revenue may permit the payment of the tax by instalments, payable in such 
proportions and at such times as may be prescribed. 
 (2) When the tax is payable by instalments, interest on delayed payments 
may be levied at such rates as may be prescribed and such interest shall be deemed 
to be part of the tax. 
 (3) When once the tax on any land has fallen due, any unpa id portion of 
the tax shall be recoverable from the successor -in-interest of the person from whom 
the tax was due. 
 Provided that in case of all alienations or transfers other than by inheritance 
the tax shall be payable before such transfer or alienation takes effect. 
8. Exemptions.– Nothing in this Ordinance applies to any land which is included 
in a village site on the date, when the Ordinance came into force and the Board of 
Revenue may by notification exempt any particular site or class of sites from t he 
operation of this Ordinance on grounds relating either to the character of the soil, the 
size of the holdings or the purposes for which it is being used. 
 
9. Power to withhold irrigation.– The Government may withhold irrigation from 
any land on which the  full amount of the tax has not been duly paid, in which case it 
may remit the tax in whole or in part and may refund any sums received unless, in 
the opinion of Government, the land is so situated that the value has risen in 
consequence of the proposal to  introduce irrigation into that area, inspite of the fact 
that irrigation is to be withheld. 
10. Rule making power.– Government may make rules to carry out all or any of 
the purposes of this Ordinance including rules to modify the procedure for 
assessment, collection and enforcement of payment under the Punjab Land 
Revenue Act, 1967, for the purpose of adapting it to the requirement of this 
Ordinance and for gradation of tax with reference to the character of the soil or the 
size of the holding. 
11. Validation.– Notwithstanding any judgement, decree or order of any Court 
including the High Court, everything done, all actions taken, notifications issued, rules 
framed, orders or appointments made, taxes imposed, levied or collected under or in 
pursuance or any of the provisions of the Thal (Increase in Value) Act, 1940 (Act No.VI of 
1940) shall be continued and be deemed to have been validly done, taken, issued, 
framed or made, imposed, levied or collected under this Ordinance. 
12. Repeal of Punjab Act VI of 19 40 and continuance of action taken 
thereunder.– (1) The Punjab Thal (Increase in Value) Act, 1940 (Act No. VI of 1940) 
is hereby repealed. 
 (2) Notwithstanding the repeal of the Punjab Thal (Increase in Value) Tax 
Act, 1940, all rules, regulations and orde rs made, notifications issued, tax imposed 
and recovered, action taken, proceedings initiated, officer appointed, person 
authorised, jurisdiction and power conferred under the provisions of the said Act, 
shall, so far as they are consistent with the provis ions of this Ordinance, continue in 
force and be deemed to have been made, imposed, levied, taken, initiated, 
appointed, authorised or conferred under this Ordinance.