PUNJAB FINANCE ACT 2019

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THE PUNJAB FINANCE ACT 2019 
(XV of 2019) 
CONTENTS 
1. Short title, extent and commencement. 
2. Amendments in Act II of 1899. 
3. Amendment in Act V of 1958. 
4. Amendment in Act XV of 1977. 
SECOND SCHEDULE 
(See section 3) 
5. Amendments in Act I of 1997. 
6. Amendments in Act XLII of 2012. 
7. Amendment in section 4 in Act XVII of 2014. 
8. Omission of section 10 in Act XXXV of 2016. 
9. Omission of section 6 in Act XXXV of 2018. 
10. TAX ON PROPERTIES OTHER THAN AGRICULTURAL LAND 
ABUTTING TO NATIONAL / PROVINCIAL HIGHWAYS AND WITHIN 
THE AREA OF MOTOR WAYS OUTSIDE THE RATING AREAS IN 
PUNJAB. 
11. Definitions. 
12. Power to make rules.  
 
 
TEXT 
1
THE PUNJAB FINANCE ACT 2019 
(XV of 2019) 
[28th June, 2019] 
An 
Act 
to levy, alter and rationalize certain taxes, fees and duties in the Punjab. 
It is necessary in public interest to levy, alter and rationalize certain taxes, fees and 
duties in the Punjab; and, to deal with ancillary matters. 
Be it enacted by Provincial Assembly of the Punjab as follows: 
1. Short title, extent and commencement.- (1) This Act may be cited as the 
Punjab Finance Act 2019. 
 (2) It extends to whole of the Punjab. 
 (3) It shall come into force on the first day of July 2019. 
2. Amendments in Act II of 1899 .- In the Stamp Act, 1899 (II of  1899), in 
Schedule I: 
(1) In Article 6, in sub Article (2): 
(a) in clause (a), in para (i), under the heading “Proper Stamp-duty”, 
for the words “one hundred thousand”, the word s “five hundred 
thousand” shall be substituted; and 
(b) in clause (b), in para (i), under the heading “Proper Stamp -duty” 
for the words, “fifty thousand”, the word s “five hundred 
thousand” shall be substituted. 
(2) In Article 40 , in clause  (d), in para  (i), under the heading “Proper  
Stamp-duty”, for the words, “one hundred thousand”,  the word s “five 
hundred thousand” shall be substituted. 
3. Amendment in Act V of 1958.- In the Punjab Urban Immovable Property Tax 
Act, 1958 (V of 1958), in section 4, for clause (g), the following shall be substituted: 
“(g) buildings and lands belonging to a widow, divorcee, a disabled 
person or a minor orphan,  annual value of which does not exceed rupees two 
hundred and forty three thousand: 
Provided that where the annual value is more than rupees two hundred 
and forty three thousand , the tax shall be  levied on the amount in excess of 
the said amount.”. 
Explanation: For purposes of this section, a minor orphan lady means an 
unmarried female orphan up to the age of twenty five years. 
4. Amendment in Act XV of 1977 .- In the Punjab Finance Act, 1977 (XV of 
1977), for SECOND SCHEDULE, the following shall be substituted: 
 
1This Act was passed by Provincial Assembly of the Punjab on 26 June 2019; assented to by the Governor of the Punjab on 28 
June 2019; and, was published in the Punjab Gazette (Extraordinary), dated: 28 June 2019, pp.4105-4114. 
 
 
 
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 million 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/- 
3. Persons other than companies owning 
commercial establishments having 10 or 
more employees 
 
 i) (a) Within Metropolitan and 
Municipal Corporation limits  
 
(b) Others  
6,000/- 
 
4,000/- 
 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 million but not 
exceeding rupees 5 million 
3,000/- 
 iii) exceeding rupees 5 million 5,000/- 
5. Contractors, builders and property  
 
 
Sr.No. Class of persons Rate of tax per 
annum(rupees) 
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 Consultants or 
Specialists/Dental Surgeons  
5,000/- 
 ii) Registered Medical Practitioners  4,000/- 
 iii) Others including Homoeopaths, 
Hakeems and Ayuervedics– 
 
(a)  Within Metropolitan and 
Municipal Corporation  limits 
 
(b)  Others 
 
 
3,000/- 
 
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 Metropolitan and 
Municipal Corporation limits  
(b) Others 
 
 
6,000/- 
 
4,000/- 
 vi) Lawyers  1,000/- 
 vii) (a) Members of Stock  Exchanges 10,000/- 
 
 
Sr.No. Class of persons Rate of tax per 
annum(rupees) 
  (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) Motor Car Dealers and Real 
 Estate Agents– 
(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 5,000/- 
 
 
Sr.No. Class of persons Rate of tax per 
annum(rupees) 
distributors 
8. Property Developers / Builders & Marketing 
Agent/Company engaged in the 
development marketing and management of 
residential, comm ercial 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 Points / 
Ice Cream Parlors / Bakeries / Confectioners 
/ Sweets Shops with air conditioning facility 
5,000/- 
 
5. Amendments in Act I of 1997 .- In the Punjab Agricultural Income Tax Act , 
1997 (I of 1997): 
 (1) for the FIRST SCHEDULE, the following shall be substituted: 
“THE FIRST SCHEDULE 
[see section 3 (1)] 
(1) Slab of total cultivated land, 
computed Rate of tax per acre as 
irrigated land, by treating one acre 
of irrigated land as equal to two 
acre of unirrigated land, excluding 
mature orchards. 
Rate of tax per 
acre 
   (i) Not exceeding 12½ acres Nil. 
   (ii) Exceeding 12½ acres but 
    not exceeding 25 acres 
Rs. 300/- 
   (iii) Exceeding 25 acres but not 
   exceeding 50 acres 
Rs. 400/- 
   (iv) Exceeding 50 acres Rs. 500/- 
 
 (2) Mature orchards 
 (i) Irrigated Rs. 600/-  
 (ii) Unirrigated Rs. 300/-”. 
 
(2) for the SECOND SCHEDULE, the following shall be substituted: 
 
 
 
 
“THE SECOND SCHEDULE 
[see section 3 (3)] 
RATES OF TAX ON TOTAL AGRICULTURAL INCOME 
The rate of tax on total agricultural income shall be as under: 
(1)  Where the total income does not exceed 
Rs.400,000/- 
0% 
(2)  Where the total income exceeds 
Rs.400,000/- but does not exceed 
Rs.800,000/- 
Rs.1,000/- 
(3)  Where the total income exceeds 
Rs.800,000/- but does not exceed 
Rs.12,00,000/- 
Rs.2,000/- 
(4)  Where the total income exceeds 
Rs.12,00,000/- but does not exceed 
Rs.24,00,000/-  
5% of the amount 
exceeding Rs.12,00,000/- 
(5)  Where the total income exceeds 
Rs.24,00,000/- but does not exceed 
Rs.48,00,000/- 
Rs.60,000/- plus 10% of the 
amount exceeding 
Rs.24,00,000/- 
(6)  Where the total income exceeds Rs. 
48,00,000/- 
Rs.300,000/- plus 15% of 
the amount exceeding 
Rs.48,00,000/-“. 
6. Amendments in Act XLII of 2012.– In the Punjab Sales Tax on Services Act 
2012 (XLII of 2012): 
(1) In section 14 , in subsection (2), after the full stop,  the following 
explanation shall be added: 
“Explanation: The word “charged” used in this sub section means and 
includes the ta x liable to be charged under this  Act or the rules made 
thereunder.”. 
(2) In section 16B, in subsection (1): 
(a) in clauses (g) and (h), for the word “sixteen”, the word “fifteen” 
shall be substituted; and 
(b) for clause (n), the following shall be substituted: 
 “(n) goods and services not related to the taxable supplies 
made or services rendered by the registered person;”. 
(3) After section 24, the following new section 24A shall be inserted: 
“24A. Determination of minimum tax liability .– Notwithstanding 
anything contained in section 24, where a registered person fails to file 
a return, an officer of the Authority, shall, subject to such conditions as 
specified by the Authority, determine the minimum tax liability of the 
registered person.”. 
 
 
(4) In section 48, in subsection (2), in the TABLE: 
(a) in entry number 2, in column 3, after the word  “provided”, the 
word “further” shall be inserted; and 
(b)  in entry number 9, in column 2, for the words “in connection with 
recovery of the tax”, the words “or tempers a seal placed by an 
officer of the Authority” shall be substituted. 
(c) after entry number 16,  in column 1 to 4,  the following new 
entries 17, 18, 19 and 20 shall be inserted: 
“17 Where any person fails or 
refuses to issue a tax invoice. 
Such person shall 
be liable to pay a 
penalty of twenty 
thousand rupees 
on first default 
and fifty thousand 
rupees for each 
subsequent 
default. 
In case of three 
acts of such 
default, the 
business 
premises shal l be 
liable to be 
sealed for a 
period which may 
extend to one 
month. 
         30 
18 Where any person fails to 
intimate any change  in 
particulars of registration  
including the particulars 
relating to business address, 
branches etc. within fourteen 
days. 
Such person shall 
be liable to pay a 
minimum penalty 
of fifty thousand 
rupees. 
25 
19 Where any person fails to 
declare, conceals  any of 
business bank accounts or 
gives misleading declaration or  
fails to intimate any change in 
business bank acc ount within 
fourteen days of such change. 
Such person shall 
be liable to pay a 
penalty which 
may range from  
one hundred 
thousand rupees 
to five  hundred 
thousand rupees. 
25 
20 Where any person either 
avoids, defies, fails to comply 
with electronic invoicing system 
or issues invoices bypassing 
the electronic invoicing system. 
Such person shall 
be liable to pay a 
penalty of up to 
one hundred 
thousand rupees, 
but not less than 
59A” 
 
 
twenty five 
thousand rupees. 
In case of th ree 
consecutive 
defaults, the  
business 
premises of such 
person may 
further be liable to 
sealing for a 
period which may 
extend to one 
month. 
(5) In section 59B, after sub section (2), the following new subsection (2A) 
shall be inserted: 
“(2A) The Authority may, in the prescribed manner, devise, implement 
and declare mandatory an electronic invoicing system for issuance of 
tax invoices by a registered person or a class of reg istered persons or 
a service or a class of services.”. 
(6) In section 60, in sub section (1), for clause (d),  the following  shall be  
substituted: 
“(d) Other officers of the Authority : Such cases or class of cases as 
may be prescribed by the  Authority.”. 
(7) In section 66, for subsection (1), the following shall be substituted: 
“(1) Any person including an officer of the Authority not below the rank 
of an Additional Commissioner, aggrieved by any order passed by the: 
  (a) Commissioner (Appeals) under subsection (4) of section 
64 or section 65; 
  (b) Commissioner through adjud ication under section 60 or 
61; or 
  (c) Authority under section 62, 
 may, within thirty days  of the receipt of such decision or 
order, prefer an appeal to the Appellate Tribunal.”. 
(8) In section 70, in subsection (1), in clause (c), after the words “bank 
accounts” the words “and recover the amount payable or recover such 
amount without attachment” shall be inserted. 
 (9) In Second Schedule: 
  (a) at S.No.15, in columns 1 to 4,  the following shall be 
 substituted: 
“15 (i) Services provided by 
property developers, builders 
and promoters (including their 
allied services).   
Excluding:  
Actual purchase value or 
9807.0000 
and 
respective 
sub-
headings 
of heading 
(i) Eight percent 
without input tax 
adjustment or 
sixteen percent 
with input tax 
adjustment; and 
 
 
documented cost of land. 
 
(ii) Affordable housing 
services provided under 
Government sponsored 
housing programs. 
98.14 (ii) Five percent 
without input tax 
adjustment or 
sixteen percent 
with input tax 
adjustment; 
  (b) at S.No.34, in column 2, for the words “and interior decorators”, 
 the words “ interior decorators and interior designers ” shall be 
 substituted; 
  (c) at S.No.43, in column 2, after the words “games”, the following 
 expression shall be inserted: 
   “,amusement parks, arcades and other recreation facilities,”; 
  (d) at S.No.54, in columns 1 to 4, the following shall be substituted: 
“54 Facilities for travel  originating from 
Punjab by Air for domestic and 
international travel. 
EXCLUDING:  
Air travel services provided to Hajj or 
Umrah passengers, diplomats and 
supernumerary crew. 
9803.1000 
9803.1100 
Five perce nt 
without input 
tax adjustment” 
and 
  (e) after S. No. 6 3, in columns 1 to 4, the following new entries 6 4, 
65, 66, 67 and 68 shall be inserted: 
64 Dress designing and stitching 
services. 
Respective 
headings 
Sixteen 
percent 
65 Rental of bulldozers, excavators, 
cranes, construction equipment, 
Scaffolding, framework and 
shuttering, generators, storage 
containers, Refrigerator, shelf or 
rack renting, etc 
Respective 
headings 
Sixteen 
percent 
66 Services in respect of treatment of 
textile, leather but not limited to 
Dyeing services, Edging and cutting, 
cloth treating, water proofing, 
Embroidery, Engraving, Fabric 
bleaching, Knitting, Leather staining, 
Leather working, Pre-shrinking, 
Colour separation services , pattern 
printing and shoe making services. 
Respective 
headings 
Sixteen 
percent 
67 Apartment house management, real 
estate management and services of 
rent collection. 
Respective 
headings 
Sixteen 
percent 
68 (i) Medical consultation/ visit fee 9815.1000 Five percent 
 
 
 
7. Amendment in section 4 in Act XVII of 2014 .– In the Punjab Finance Act 
2014 (XVII of 2014), in section 4, clause (b) shall be omitted. 
8. Omission of section 10 in Act XXXV of 2016 .– In the Punjab Finance Act 
2016 (XXXV of 2016), section 10 shall be omitted. 
9. Omission of section 6 in Act XXXV of 2018 .– In the Punjab Finance Act 
2018 (XXX of 2018), section 6 shall be omitted. 
10. TAX ON PROPERTIES OTHER THAN AGRICULTURAL LAND ABUTTING 
TO NATIONAL / PROVINCIAL HIGHWAYS AND WITHIN THE AREA OF MOTOR 
WAYS OUTSIDE THE RATING AREAS IN PUNJAB .- (1) There shall be charged, 
levied, assessed and paid a tax at the rate of five percent of the Ann ual Taxable 
Value of all categories of properties other than agricultural land, outside limits of the 
rating area, abutting to national or provincial highway or part thereof or within the 
area of motorways, in such limits and lengths, as may be notified by  the 
Government. 
(2) The tax under this section shall be due from the owner or the occupant, 
jointly and severally to be charged, levied, assessed and paid in addition to any other 
tax charged and collected under any other law for the time being in force a nd shall 
be the first charge upon the property unit. 
(3) The tax under this section shall not be leviable in respect of the 
buildings and lands: 
(i) Annual Taxable Value of which does not exceed rupees five 
hundred thousand belonging to a widow, a divorcee, a disabled 
person, a minor orphan or a female unmarried orphan upt o the 
age of twenty five years; 
(ii) owned by Federal or Provincial Government; or 
(iii) exclusively used by public for worship. 
(4) The tax, including surcharge, payable under this sectio n, shall be 
administrated and regulated  under the provisions of the Punjab Urban Immovable 
Property Tax Act, 1958 (V of 1958). 
(5) Notwithstanding any other provision of this section, the Government 
may, by notification in the official Gazette, exempt any property unit or persons, or 
classes thereof, from the whole or any part of the tax chargeable under this section, 
subject to such conditions and limitations as may be specified by the Government. 
 Explanation: A word or term used but not defined in this A ct shall have the 
same meanings as defined in the Punjab Urban Immovable Property Tax Act, 1958 
(V of 1958). 
exceeding Rs.1,500  per 
consultation/ visit of doctors, medical 
practitioners and medical specialists. 
(ii) Bed / room charges of hospitals 
exceeding Rs.6,000/ - per day per 
bed / room 
and other 
Respective 
headings. 
without input 
tax 
adjustment”. 
 
 
11. Definitions.- In this Act: 
(a) “Annual Taxable Value” means the value of a distinct property unit 
excluding the value of any machinery etc. thereof, which shall be the 
basis of determination of tax assessed, levied and recovered under  
section 10 of this Act; 
(b) “buildings and lands” in relation to the ta x under section 10  of this Act 
includes a parcel or portion thereof having  distinct boundaries intended 
for specific purpose including residential, commercial or industrial use; 
(c) “Government” means Government of the Punjab; 
(d) “motorways” means the multiple-lane, high speed, limited access or 
controlled access highways in Punjab which are owned, mai ntained and 
operated as such by the National Highway Authority; 
(e) “national highways” means the highways in the Punjab which are owned, 
maintained and operated as such by the National Highway Authority; 
(f) “owner” includes a mortgagee with possession, a lessee in perpetuity, a 
trustee having possession of a trust property and a person to whom an 
evacuee property has been transferred provisionally or permanently; 
(g) “prescribed” means prescribed by the rules made under this Act; 
(h) “provincial highways” means the highways, including but not limited to in 
Punjab which are owned, maintained and operated by the province of the 
Punjab; and 
(i) “rating area” means urban area where p roperty tax is levied under the 
Punjab Urban Immovable Property Tax Act, 1958 (V of 1958). 
12. Power to make rules .- The Government may make rules for carrying out the 
purposes of any of the provisions of this Act.