WEST PAKISTAN FINANCE ACT, 1962

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THE WEST PAKISTAN FINANCE ACT, 1962 
(I of 1962) 
CONTENTS 
1. Short title and commencement 
2. Definitions 
3. Surcharge on land revenue in certain districts 
4. Levy of cess on land revenue 
5. Surcharge on agricultural income-tax in certain districts 
6. Increase in stamp duty 
7. Tax on cinemas 
8. Repealed 
9. Tax on callings, professions, etc 
10. Tax on trades, import and export licenses 
11. Tax on Motor Vehicles 
12. Tax on railway fares and freights 
13. Toll on freight on goods carried by road 
14. Toll on vessels plying in inland waters 
15. Toll on fares and freights on inland traffic by vessels 
16. Tax on betting 
17. Penalty 
18. Abolition of Electricity Duty 
19. Application of existing laws 
20. Power to amend or vary an Act 
21. Power to make rules 
SCHEDULES 
1. FIRST SCHEDULE 
2. SECOND SCHEDULE 
3. THIRD SCHEDULE 
4. FOURTH SCHEDULE 
5. FIFTH SCHEDULE 
 
TEXT 
1
THE WEST PAKISTAN FINANCE ACT, 1962 
(I of 1962) 
[6th July, 1962] 
An 
Act 
to continue, levy and abolish certain taxes and duties in West Pakistan. 
WHEREAS it is expedient to continue, levy and abolish cert ain taxes and 
duties in the Province of West Pakistan; 
 It is hereby enacted as follows:– 
1. Short title and commencemen t.– (1)This Act may be called the West 
Pakistan Finance Act, 1962. 
(2) It shall come into force on and from the first day of July, 1962. 
(3) It shall extend, unless otherwise specified hereinafter, to the whole of 
West Pakistan except the Tribal Areas. 
2. Definitions.– In this Act– 
(a) “agricultural year” means the agricultural year as defined in the Punjab 
Land Revenue Act, 1887
2
, (Act XVII of 1887); 
(b) “Government” means the Government of West Pakistan; 
(c) “revenue year” means the revenue year as defined in the Sind Land 
Revenue Code, 1879 (Sind Act V of 1879). 
3. Surcharge on land revenue in certain districts .– (1) There shall be levie d 
and collected from every owner of land which is assessed to land revenue in the 
districts of Karachi, Dadu, Hyderabad, Tharparker, Jacobabad, Larkana, 
Nawabshah, Sanghar, Sukkur and Thatta an additional amount of land revenue by 
way of surcharge on the l and revenue payable in the revenue year, 1961 -62 at the 
rates specified in the First Schedule to this Act. 
Explanation.– For purposes of this section land revenue includes any water rate 
payable in respect of irrigated land. 
(2) The provisions of the Sind Land Revenue Code, 1879 (Sind Act V of 
1879), shall, as far as may be, apply to the assessment, collection and recovery of 
the surcharge imposed under this section. 
                                                           
1This Act was passed by the West Pakistan Assembly on 30th June, 1962; and, on its having been assented to by the 
Governor of West Pakistan, it was published in the West Pakist an Gazette (Extraordinary), dated 6th July, 1962, pages 2693 -
2701. For statement of objects and reasons, see Gazette of West Pakistan, dated 17th June, 1962, (Extraordinary), page 2467. 
2Repealed by the West Pakistan Land Revenue Act, 1967 (XVII of 1967), s.184 and the Schedule; and published in the Gazette 
of West Pakistan (Extraordinary), dated 7.12.1967. 
4. Levy of cess on land revenue .– (1) A development cess shall be levied on 
all lands in th e Province except the districts of Kalat, Kharan and Mekran at the rate 
of twenty-five per cent of the revenue payable in respect of such land. 
(2) The cess shall be payable by the person liable for the payment of land 
revenue. 
Explanation.– In this sectio n, “land” means land assessed to land revenue and 
includes land whereof the land revenue has been wholly or in part released, 
compounded for, redeemed or assigned. 
(3) Government may, by notification, exempt any class of persons from the 
payment of the whole or any part of the cess or reduces the rate of the cess leviable 
on any class of land. 
(4) The cess levied on the basis of land revenue shall be assessed, 
collected and recovered in the manner prescribed, from time to time, by Government 
by statute , rules or orders for the assessment, collection and recovery of land 
revenue. 
(5) Government may, by notification, modify the rules or orders referred to 
in sub -section (4) and may make further rules for the assessment, collection and 
recovery of the cess. 
5. Surcharge on agricultural income -tax in certain districts .– (1) There shall 
be levied and collected from every owner of land which is assessed to agricultural 
income-tax in the districts of Bannu, Dera Ismail Khan, Hazara, Mardan, Kohat, 
Peshawar, Campbell pur, Dera Ghazi Khan, Gujranwala, Gujrat, Jhelum, Jhang, 
Lahore, Lyallpur, Mianwali, Montgomery, Multan, Muzaffargarh, Rawalpindi, 
Sargodha, Sheikhupura and Sialkot, on the land revenue payable in the agricultural 
year 1961-62, an additional amount of agricultural income-tax by way of surcharge at 
the rates specified in the Second Schedule to this Act. 
(2) The provisions of the North -West Frontier Province Agricultural 
Income-tax Act, 1948 (N.W.F.P. Act XVII of 1948), and the Punajb Agricultural 
Income tax Act, 1951 (Punjab Act XVI of 1951), shall, so far as may be, apply to the 
assessment, collection and recovery of the surcharge imposed under this section. 
6. Increase in stamp duty.– Until the 30th June, 1963, Schedule I to the Stamp 
Act, 1899 (Act II of 1899), shall have effect as if– 
(a) in Article I for the entries in the first and second columns, the following 
were substituted namely:– 
“ACKNOWLEDGMENT OF a debt exceeding twenty rupees in amount 
or value written or signed by, or on behalf of , a debtor in  order to 
supply evidence of such debt in any book (other than a banker’s pass 
book) or on a separate piece of paper, when such book or paper is left 
in the creditor’s possession; provided that such acknowledgment does 
not contain any promise to pay the de bt or any stipulation to pay 
interest or to deliver any goods or other property,– 
(i) if the amount of value does not exceed 12 paisa. 
one hundred rupees. 
(ii) in other cases 25 paisa.” 
(b) in Article 53, for the entries except the exemption in the first a nd 
second columns, the following were substituted, namely:– 
“RECEIPT (as defined by section 2 (23)) for any money or other 
property the amount or value of which,– 
(i) exceeds twenty rupees but does not 12 paisa. 
exceed one hundred rupees. 
(ii) in other cases 25 paisa.” 
7. Tax on cinemas .– There shall be levied and collected a tax on cinemas 
payable by the owner or management thereof at the following rates for the financial 
year, 1962-63:– 
(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. 
3
[8. Entertainment tax.–  * * * * * * * * *   ] 
9. Tax on callings, professions, etc.– There shall be levied and collected from 
the following classes of persons a tax of the amount specified against each for the 
financial year, 1962-63:– 
Class of persons Amount of tax 
(
i) Legal practitioners of not less than five 
years standing 
Twenty rupees 
(
ii) Income-tax practitioners Twenty rupees 
(
iii) Clearing agents, licensed or approved 
as Custom House Agents 
One hundred rupees 
(
iv) Contractors supplying goods, 
commodities and services to the 
Central Government or the Provincial 
Government or any Local Authority 
Two hundred 
rupees, or one 
hundred rupees, or 
fifty rupees 
according to 
classification. 
10. Tax on trades, import and export licenses.– (1) For the financial year, 
1962-63, there shall be levied and collected from every person engaged in the import 
and export trade who holds a license issued under the Imports and Exports (Control) 
                                                           
3Repealed by the West Pakistan Finance (Amendment) Ordinance, 1963 (V of 1963), s.2; and published in the Gazette of West 
Pakistan (Extraordinary), dated 5.2.1963, pages 693-694. 
Act, 1950 (Act XXXIX  of 1950), a tax on the value of the goods imported or, as the 
case may be, exported against such license, according to the scale set ou t in the 
Third Schedule to this Act. 
 (2) Government may, by a notification in the official Gazette, exclude any 
class of license issued as aforesaid from the purview of sub -section (1), or, by a 
general or a special order in writing, exempt a person holdi ng such license from the 
payment of the whole or a part of the tax payable by him in respect of the goods 
imported or exported against such license. 
11. Tax on Motor Vehicles.– There shall be levied and collected in any area in 
which a tax is imposed on motor vehicles by or under any enactment, a surcharge on 
such tax at the following rates for the financial year, 1962-63:– 
 
(i) Motor vehicles used for the transport or 
carriage of goods and materials 
Twenty-five rupees 
 
(ii) Motor vehicles plying for hire and used 
for transport of passengers– 
 
 (a) licensed to carry not more than 
eight persons 
Twelve rupees 
 (b) Licensed to carry more than eight 
persons 
Fifty rupees 
 
(iii) Motor cars not plying for hire Twelve rupees. 
12. Tax on railway fares and freigh ts.– Until the 30th day of June, 1962, there 
shall be levied and paid on railway fares and freights a tax according to the scale set 
out in the Fourth and Fifth Schedules to this Act. 
13. Toll on freight on goods carried by road .– (1) Until the 30th day of  June, 
1963, there shall be levied and collected on freights charged for goods transported 
by motor vehicles by road a toll according to the scale set out in the Fourth Schedule 
to this Act. 
(2) The toll shall be collected by the owner of the motor vehicle s and paid 
to the Government. 
14. Toll on vessels plying in inland waters. – (1) For the financial year 1962-63, 
there shall be levied and collected in the District of Karachi a toll on steam vessels 
and motor vessels plying in inland water at the rates specified hereunder:– 
On vessels of a tonnage of– 
Less than 100 tons One hundred rupees 
100 tons but less than 500 tons Two hundred and fifty 
rupees 
500 tons but less than 1,000 tons Five hundred rupees 
1,000 tons and upwards One thousand rupees. 
(2) The toll shall be payable by the owner or the charterer of the vessel. 
(3) In this section “steam vessels” and “motor vessels” mean every 
description of vessels propelled wholly or in part by the agency of steam or oil, as the 
case may be. 
15. Toll on fares an d freights on inland traffic by vessels. – (1) For the 
financial year 1962-63, there shall be levied and collected in the District of Karachi, a 
toll on fares and freights charged for transport by steam -vessels and motor -vessels 
plying in inland waters, acc ording to the scale set out in the Fourth and Fifth 
Schedules to this Act. 
(2) The toll shall be collected by the owner or the charterer of the vessels 
and paid to Government. 
(3) In this section “steam -vessels” and “motor -vessels” have the same 
meaning as in section 14. 
16. Tax on betting .– Until the 30th June, 1963, there shall be levied and 
collected in the District of Karachi an additional tax by way of surcharge amounting 
to twenty -five per cent of the betting tax on horse -racing or pony -racing imposed  
under any enactment for the time being in force. 
Explanation.– The expression “betting tax” includes a tax charged in respect of 
moneys paid into a totalisat or by way of stakes or bets. 
17. Penalty.– If the person, who is responsible for the collection a nd payment of 
the toll or tax under section 9, 10, 13, 14 or 15, fails to collect and pay the toll or tax 
as provided in the said section, he shall be liable to pay a penalty not exceeding the 
amount of the toll, or tax payable. 
18. Abolition of Electricity Duty.– The electricity duty imposed under the Sind 
Finance Act, 1932 (Sind Act II of 1932), on units of electrical energy consumed is 
hereby abolished. 
19. Application of existing laws .– Where any tax or surcharge imposed by this 
Act is by way of an addi tion to or a surcharge on any existing tax imposed by or 
under an enactment, the procedure provided in such enactment for the assessment, 
collection and recovery of such tax, shall, so far as applicable, apply to the 
assessment, and collection and recovery of the additional tax or surcharge. 
20. Power to amend or vary an Act .– Government may, by notification, make 
such omissions from, additions to, adaptations, and modification of any West 
Pakistan Act as may be necessary for the purpose of the levy and col lection of any 
tax imposed by this Act. 
21. Power to make rules.– (1) Government may make rules regarding– 
(i) Classification of cinemas for the purposes of section 7; 
(ii) Classification of contractors for the purpose of section 9; 
(iii) The procedure for the collection and payment of any tax or toll levied 
under this Act; 
(iv) Any other matter incidental thereto. 
(2) Any rules made or deemed to have been made under the 
corresponding provisions of the West Pakistan Finance Ordinance, 1961 (West 
Pakistan Ordinance XV of 1961), and the Finance Ordinance, 1961 (Ordinance XXIV 
of 1961), shall, so far as may be, be continued and be deemed to have been made 
under this Act. 
FIRST SCHEDULE 
[See SECTION 2] 
Surcharge 
Where the total land revenue 
and water rate for irrigation 
does not exceed Rs.1,999 
Nil 
Where the total land revenue 
and water rate for irrigation 
exceeds Rs.1,999 
1½ per cent 
of such total. 
SECOND SCHEDULE 
[See Section 5] 
       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. 
THIRD SCHEDULE 
[See SECTION 10] 
Amount of tax 
When the licence is for an 
amount not exceeding Rs.4,999. 
Nil 
When the licence is for an 
amount exceeding Rs.4,999 but 
not exceeding Rs.9,999. 
Rupees 
ten. 
When the licence is for an 
amount exceeding Rs.9,999 but 
not exceeding Rs.19,999. 
Rupees 
fifty. 
When the licence is for an 
amount exceeding Rs.19,999 but 
not exceeding Rs.49,999. 
Rupees 
one 
hundred 
and fifty. 
When the licence is for an 
amount exceeding Rs.49,999 but 
not exceeding Rs.99,999. 
Rupees 
five 
hundred. 
When the licence is for an 
amount exceeding Rs.99,999. 
Rupees 
one 
thousand. 
FOURTH SCHEDULE 
[See SECTIONS 12, 13 AND 15] 
       Surcharge 
Freights (goods)– 
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.25 but 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 thre e hundred 
rupees of freight. 
FIFTH SCHEDULE 
[See SECTIONS 12 AND 15] 
Fares (Passengers)    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 or deck ticket.  6 paisa. 
Provided that no tax shall be levied where the fare does not exceed Rs.3.