PUNJAB FINANCE ACT 1985

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THE PUNJAB FINANCE ACT 1985  
(I of 1985) 
CONTENTS 
1. Short title, extent and commencement 
2. Amendment of sections 3 and 4 of Act XXXII of 1958 
3. Amendment in section 4 of Act XIV of 1973 
4. Repeal of Federal Act XIV of 1963 
 
TEXT 
1
THE PUNJAB FINANCE ACT 1985  
(I of 1985) 
[12th June, 1985] 
An 
Act 
to make certain provisions in relation to taxation in the Province of the Punjab 
Preamble.– Whereas it is  expedient to make certain provisions in relation to taxation 
in the Province of the Punjab; 
It is hereby enacted as follows:– 
1. Short title, extent and commencement. – (1) This Act may be called the 
Punjab Finance Act 1985. 
(2) It shall extend to the whole of the Province of the Punjab. 
(3) It shall come into force on and from the first day of July 1985. 
2. Amendment of sections 3 and 4 of Act XXXII of 1958. – In the Punjab Motor 
Vehicles Taxation Act, 1958 (XXXII of 1958):– 
(a) In section 3, in sub-section (1)– 
(i) in the first proviso after the word “Schedule” and before the 
colon, the following words shall be added:- 
“or direct that subject to such conditions as may be prescribed, 
the tax shall be leviable on annual basis”; 
(ii) after the second proviso, the following new proviso shall be 
added:- 
“Provided further that if so opted by a tax payer, the tax in 
respect of a motor vehicle may be levied once for all at such rate 
as may be prescribed and if the tax is so paid such motor 
vehicle shall forever ceas e to be liable to the payment of tax 
under this Act.” 
(b) in section 4, in sub -section (2), after the word “April” and before the 
colon, the following words shall be added:– 
“if in lumpsum for a financial year, before the first day of October and if 
once for all, at the time of initial registration”; 
(c) in section 8, after sub -section (1), the following new sub-section shall 
be added:– 
“(1-A) The provisions of sub -section (1) shall apply mutatis 
mutandis in the case of vehicles liable to pay the tax annually.” 
                                                                 
1This Act w as passed by the Punjab Assembly on 12th June, 1985 assented to by the Governor of the Punjab on 12th June, 
1985; and, published in the Punjab Gazette (Extraordinary), dated 12th June, 1985 pages 2205-2206. 
(d) in section 13, after sub-section (2), the following shall be added:– 
“(2-A) Whoever becomes liable to pay the tax annually but 
proves to the satisfaction of the licensing officer that he has not used or 
permitted the use of the motor vehicle for a t least three months, shall 
be entitled to receive an order in writing from the licensing officer 
exempting him from liability to pay the tax for that period 
proportionately and the licensing officer shall make an endorsement to 
that effect upon the licence.” 
3. Amendment in section 4 of Act XIV of 1973. – In the Punjab Finance Act 
1973 (XIV of 1973), in section 4, in sub-section (1), clause (iii) shall be omitted. 
4. Repeal of Federal Act XIV of 1963. – The Gift Tax Act 1963 (Federal Act XIV 
of 1963), is hereby repealed.