PUNJAB HORSE-RACE BETTING TAX ACT, 1958

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THE PUNJAB HORSE-RACE BETTING TAX ACT, 1958 
(IV of 1958) 
CONTENTS 
1. Short title, extent and commencement. 
2. Definitions. 
3. Levy of totalizator tax. 
4. Levy of betting tax. 
4-A. Power to Government to issue directions. 
4-B. Payment to Manager for collection of taxes, etc. 
5. Assessment collection and payment of tax. 
6. Duties of the management. 
7. Tax in lieu of taxes under sections 3 and 4. 
8. Appointment of Inspectors. 
9. Exemptions. 
10. Punishment and procedure. 
11. Rules. 
12. Repeal and Savings. 
 
 
 
TEXT 
1
THE 
2
[PUNJAB] HORSE-RACE BETTING TAX ACT, 1958 
(IV of 1958) 
[10 April 1958] 
An 
Act 
to consolidate the law relating to the levy of taxes on horse-race betting in 
3
[the 
Punjab]. 
Preamble.– WHEREAS it is expedient to consolidate the law relating to the levy of 
taxes on horse-race betting on a uniform basis throughout 
4
[the Punjab]; 
 It is hereby enacted as follows:– 
1. Short title, extent and commencement .– (1) This Act m ay be called the 
5
[Punjab] Horse-race Betting Tax Act, 1958. 
 
6
[(2) It extends to the whole of the Province of 
7
[the Punjab], except the 
Tribal Areas.] 
 (3) It shall come into force at once. 
2. Definitions.– In this Act unless there is anything repugnant i n the subject or 
context:– 
(a) “backer” means any person who bets at a totalizator or with a book -
maker; 
(b) “bet” or “betting” means a contract by a person to pay a certain sum of 
money to another in the event of the winning or the placing of a horse 
in a  horse-race in consideration of certain payment or promise of 
payment by that other, and includes payment of money by any person 
to another on the happening of that event in consideration of that other 
paying to him on the event not happening;  
(c) “book-maker” means a person who carries on the business of making 
bets with the public in general; 
                                                           
1For Statement of Objects and Reasons, see Gazette of West Pakistan (Extraordinary), March 24, 1958, pp. 306-307. This Act 
was passed by the West Pakistan Assembly on March  26, 1958, assented to by the Governor of West Pakistan on Apr il 8, 
1958, published in the Gazette of West Pakistan (Extraordinary), April 10, 1958, pp. 513-518. 
2Substituted for the words “West Pakistan” by the Punjab Laws (Adaptation) Order, 1974 (1 of 1974) (w.e.f.  14.8.1973), 
published in the Punjab Gazette (Extr aordinary), dated November 20, 1974, pp.  1425-A-1425-PP, Article 2(1) read with 
Schedule. 
3Ibid. 
4Ibid. 
5Ibid. 
6Substituted by the West Pakistan Horse -Race Betting Tax (Amendment) Ordinance, 1964 (VI of 1964), published in the 
Gazette of West Pakistan (Extraordinary), dated May 25, 1964, pp. 1693-1694, s. 2.  
7Substituted for the words “West Pakistan” by the Punjab Laws (Adaptation) Order, 1974 (1 of 1974) (w.e.f.  14.8.1973), 
published in the Punjab Gazette (Extraordinary), dated November 20, 1974, pp.  1425-A-1425-PP, Article 2(1) read with 
Schedule. 
1
[
2
[(d) “Director”, Excise and Taxation‟ means any officer appointed as such 
by Government, and shall include any officer appointed by Government 
as Additional Director, Excise and Taxation;]] 
(e) “Government” means 
3
[the Provincial Government of the Punjab]; 
(f) “manager” means a person (whether an individual, a corporate body or 
an association) primarily responsible for the holding of a race -meeting 
or his nominee approved by the 
4
[Commissioner], for the purpose of 
this Act; 
(g) “prescribed” means prescribed by rules made under this Act; 
(h) “race-meeting” means an assembly of persons at a horse-race to which 
the public have access whether on payment or otherwise; 
(i) “totalizator” means the system of betting in horse -races which enables 
persons to make bets with one another on the principle of a common 
pool and includes any machine, instrument or contrivance used for the 
purpose. 
3. Levy of totalizator tax .– (1) Government may, by notification, from time to 
time, direct that a tax not exceeding 20 per cent (hereinafter referred to as the 
“totalizator tax”) shall be levied on backers in respect of all moneys paid by them into 
any totalizator by way of bets. 
 (2) Every notification issued under sub -section (1) shall specify the local 
area in which, the rate at which, and the date from which totalizator tax shall be 
levied. 
 (3) Such portion of the moneys paid into the totalizator as is equivalent to 
the amount of the to talizator tax calculated at the rate specified in the aforesaid 
notification shall be deemed to have been paid by the backers on account of the 
totalizator tax and to have been received by the manager on behalf of the 
Government. 
4. Levy of betting tax .– 
5
[
6
[(1) Government may, by notification, from time to 
time, direct that a tax not exceeding 20 per cent (hereinafter referred to as the 
“betting tax”) shall be levied and paid out of all moneys paid or agreed to be paid to 
the book -makers by backers in resp ect of bets made in a place within the race 
enclosure which the manager has set apart for the purposes of such betting.]] 
                                                           
1Substituted by the West Pakistan (Adaptation of Laws) Ordinance, 1962 (XXV of 1962), published in the Gazette of West 
Pakistan (Extraordinary), dated June 2, 1962, pp. 2195-2200, s. 3(2) read with Schedule II.  
2Substituted by the West Pakistan Horse -Race Betting Tax (Second Amendment) Ordinance, 1964 (X of 1964), published in 
the Gazette of West Pakistan (Extraordinary), dated August 1, 1964, pp. 2543-2545, s. 2. 
3Substituted for the words “Government of West P akistan” by the Punjab Laws (Adaptation) Order, 1974 (1 of 1974) (w.e.f.  
14.8.1973), published in the Punjab Gazette (Extraordinary), dated November 20, 1974, pp.  1425-A-1425-PP, Article 2(1) read 
with Schedule. 
4Substituted for the words “Director, Excise  and Taxation, West Pakistan” by the West Pakistan (Adaptation of Laws) 
Ordinance, 1962 (XXV of 1962), published in the Gazette of West Pakistan (Extraordinary), dated June 2, 1962, pp. 2195-2200, 
s. 3(2) read with Schedule II.  
5Substituted by the West Pa kistan Horse-Race Betting Tax (Amendment) Ordinance, 1960 (XXXV of 1960), published in the 
Gazette of West Pakistan (Extraordinary), dated July 23, 1960, pp. 2949-2950, s. 2(i). 
6Substituted by the West Pakistan Horse -Race Betting Tax (Second Amendment) Or dinance, 1964 (X of 1964), published in 
the Gazette of West Pakistan (Extraordinary), dated August 1, 1964, pp. 2543-2545, s. 3. 
 (2) Every notification issued under sub -section (1) shall specify the local 
area in which, the rate at which, and the date from which , the betting tax shall be 
levied. 
 
1
[
2
[(3) Such portion of the moneys referred to in sub -section (1) as is 
equivalent to the amount of the betting tax calculated at the rate specified in the 
aforesaid notification, shall be deemed to have been paid by eac h backer concerned 
on account of the betting tax and to have been received by the book -maker 
concerned on behalf of the Government.]] 
 
3
[(4) The moneys received by the book-makers on account of the betting tax 
shall be made over to the manager for payment to Government.] 
4
[4-A. Power to Government to issue directions .– Government may, by 
notification
5
 in the Official Gazette, direct that–  
(a) no bets shall be made or settled with a book -maker except at a 
specified time and place;  
(b) payment by a book -maker to a backer in consequence of a bet made 
and won by the latter on credit shall be made by means of a cheque;  
(c) a list of all bets referred to in clause (b) be supplied by the book -maker 
to the prescribed authority in the prescribed manner.]  
6
[4-B. Payment to Manager for collection of taxes, etc .– Government may pay to 
any manager, on such terms and conditions as may be specified by the Government, 
such sum of money or such percentage of the betting tax or the totalizator tax as it 
may fix, for collecting and depositing the betting tax and the totalizator tax.] 
5. Assessment collection and payment of tax .– The betting tax or the 
totalizator tax shall be assessed, collected and paid in such manner as may be 
prescribed by the Government. 
6. Duties of the  management.– The manager of every race -meeting at which 
betting takes place shall– 
7
[(a) cause accounts to be kept in the prescribed manner of all sums paid 
into every totalizator, and of all sums paid or agreed to be paid to the 
book-makers by backers in respect of bets made by the latter; 
                                                           
1Substituted by the West Pakistan Horse -Race Betting Tax (Amendment) Ordinance, 1960 (XXXV of 1960), published in the 
Gazette of West Pakistan (Extraordinary), dated July 23, 1960, pp. 2949-2950, s. 2(ii). 
2Substituted by the West Pakistan Horse -Race Betting Tax (Second Amendment) Ordinance, 1964 (X of 1964), published in 
the Gazette of West Pakistan (Extraordinary), dated August 1, 1964, pp. 2543-2545, s. 3(b). 
3Ibid., s. 3(c). 
4Substituted by the West Pakistan Horse -Race Betting Tax (Amendment) Ordinance, 1960 (XXXV of 1960), published in the 
Gazette of West Pakistan (Extraordinary), dated July 23, 1960, pp. 2949-2950, s. 3. 
5Directed by the Revenue and Rehabilitation Department’s Notification No. Tax -XII-10-259(a), dated December 12, 1960, Part 
I, p. 634. 
6Substituted by the West Pakistan Horse -Race Betting Tax (Second Amendment) Ordinance, 1964 (X of 1964), published in 
the Gazette of West Pakistan (Extraordinary), dated August 1, 1964, pp. 2543-2545, s. 4. 
7Ibid., s. 5(a). 
(b) forward at the time, in the manner, and to the officer, prescribed in this 
behalf, a return showing the total amount of the sums paid into every 
totalizator and of all sums paid or agreed to be paid to the book-makers 
by backers in consequence of the bets made by the latter;]  
(c) deposit or make over the totalizator tax and the betting tax due, 
collected or received, in the prescribed manner; and 
(d) furnish such other information and returns as may be prescribed: 
 Provided that where the manager satisfies the 
1
[
2
[Director, Excise and 
Taxation]] that a particular amount of betting tax has remained undeposited for 
reasons beyond his control and that the book-maker concerned is responsible for not 
making it over to him , the 
3
[
4
[Director, Excise and Taxation]], may pass an order to 
the effect that the liability to deposit that amount is that of the book-maker. 
7. Tax in lieu of taxes under sections 3 and 4 .– The manager of every race -
meeting in any local area in respect of which a notification has not been issued 
under section 3 or section 4 shall pay to the Government by way of tax, in respect of 
such meeting, such amount not exceeding five hundred rupees as may be 
prescribed. 
8. Appointment of Inspectors .– (1) The 
5
[Commissioner], may appoint 
Inspectors for any local area to inspect race-meetings and the accounts of betting. 
 (2) Every person appointed under sub -section (1) shall be deemed to be a 
public servant within the meaning of section 21 of the Pakistan Penal Code
6
, and 
shall be given free access to every race -meeting held in the local areas for which he 
has been appointed and to every place where betting is conducted at such race -
meeting and to all books of account relating to such betting, whether such books 
belong to the manager or to any book-maker. 
9. Exemptions.– The Government may, by notification showing reasons for 
such exemption exempt any race-meeting from– 
(a) the totalizator tax leviable under section 3; or 
(b) the betting tax leviable under section 4; or 
(c) the tax leviable under section 7. 
                                                           
1Substituted for the words “Deputy Director Excise and Taxation” by the West Pakistan (Adaptation of Laws) Ordinance, 1962 
(XXV of 1962), published in the Gazette of West Pakistan (Extraordinary), dated June 2, 1962, pp. 2195-2200, s. 3(1) read with 
Schedule I. 
2Substituted for the words “Divisional Excise and Taxation Officer” by the West Pakistan Horse -Race Betting Tax (Second 
Amendment) Ordinance, 1964 (X of  1964), published in the Gazette of West Pakistan (Extraordinary), dated August 1, 1964, 
pp. 2543-2545, s. 5(b). 
3Substituted for the words “Deputy Director Excise and Taxation” by the West Pakistan (Adaptation of Laws) Ordinance, 1962 
(XXV of 1962), published in the Gazette of West Pakistan (Extraordinary), dated June 2, 1962, pp. 2195-2200, s. 3(1) read with 
Schedule I. 
4Substituted for the words “Divisional Excise and Taxation Officer” by the West Pakistan Horse -Race Betting Tax (Second 
Amendment) Ordinance, 1964 (X of 1964), published in the Gazette of West Pakistan (Extraordinary), dated August 1, 1964, 
pp. 2543-2545, s. 5(b). 
5Substituted for the words “Director, Excise and Taxation, West Pakistan” by the West Pakistan (Adaptation of Laws) 
Ordinance, 1962 (XXV of 1962), published in the Gazette of West Pakistan (Extraordinary), dated June 2, 1962, pp. 2195-2200, 
s. 3(2) read with Schedule II.  
6XLV of 1860. 
10. Punishment and procedure .– (1) (a) If payment of any tax due under this 
Act is evaded or the tax is not deposited within the prescribed time, the 
1
[
2
[Director, 
Excise and Taxation]], may determine the person or persons liable in this respect 
and may impose a penalty not exceeding five times the amount of tax or rupees one 
thousand whichever is greater, in addition to the tax evaded or unpaid 
3
[:] 
 
4
[Provided that no order shall be made under this clause making  any person 
or persons liable for the payment of a tax or imposing on any such person or persons 
a penalty without giving such person or persons an opportunity of being heard and 
showing cause against the proposed order.] 
(b) Any person who contravenes the pr ovisions of this Act or the rules 
made thereunder or fails to comply with any direction given under this 
Act or the rules made thereunder, shall be punished with fine which 
may extend to five hundred rupees. 
(c) If any sum due on account of any tax or pena lty under this Act is not 
paid within the time allowed for its payment and the person from whom 
it is due does not show cause to the satisfaction of the 
5
[
6
[Director, 
Excise and Taxation]], or any officer authorised by him, why he should 
not pay the same, such sum (inclusive of the cost of recovery) may be 
recovered under a warrant in the prescribed form, or in a form to like 
effect, signed by the 
7
[
8
[Director, Excise and Taxation]], by the distress 
and sale of any movable property belonging to such person.  The 
warrant may be addressed to any officer of the Excise and Taxation 
Department for execution and in executing it he may obtain such 
assistance from other servants of the department as he may consider 
necessary. 
(d) Any sum due on account of any tax or penalty under this Act shall be 
recoverable as arrears of land revenue. A certificate issued by the 
                                                           
1Substituted for the words “Deputy Director Excise and Taxation” by the West Pakistan (Adaptation  of Laws) Ordinance, 1962 
(XXV of 1962), published in the Gazette of West Pakistan (Extraordinary), dated June 2, 1962, pp. 2195-2200, s. 3(1) read with 
Schedule I. 
2Substituted for the words “Divisional Excise and Taxation Officer” by the West Pakistan Ho rse-Race Betting Tax (Second 
Amendment) Ordinance, 1964 (X of 1964), published in the Gazette of West Pakistan (Extraordinary), dated August 1, 1964, 
pp. 2543-2545, s. 6. 
3Substituted for the full stop by the West Pakistan Laws (Amendment) Ordinance, 1965 (XXXIV of 1965), published in the 
Gazette of West Pakistan (Extraordinary), dated November 2, 1965, pp. 5607-5614, s. 3 read with Second Schedule. 
4Added by the Ordinance ibid. 
5Substituted for the words “Deputy Director Excise and Taxation” by the West Pa kistan (Adaptation of Laws) Ordinance, 1962 
(XXV of 1962), published in the Gazette of West Pakistan (Extraordinary), dated June 2, 1962, pp. 2195-2200, s. 3(1) read with 
Schedule I. 
6Substituted for the words “Divisional Excise and Taxation Officer” by th e West Pakistan Horse -Race Betting Tax (Second 
Amendment) Ordinance, 1964 (X of 1964), published in the Gazette of West Pakistan (Extraordinary), dated August 1, 1964, 
pp. 2543-2545, s. 6. 
7Substituted for the words “Deputy Director Excise and Taxation” by  the West Pakistan (Adaptation of Laws) Ordinance, 1962 
(XXV of 1962), published in the Gazette of West Pakistan (Extraordinary), dated June 2, 1962, pp. 2195-2200, s. 3(1) read with 
Schedule I. 
8Substituted for the words “Divisional Excise and Taxation Of ficer” by the West Pakistan Horse -Race Betting Tax (Second 
Amendment) Ordinance, 1964 (X of 1964), published in the Gazette of West Pakistan (Extraordinary), dated August 1, 1964, 
pp. 2543-2545, s. 6. 
1
[
2
[Director, Excise and Taxation]], showing that any amount is due as 
tax or penalty, shall be conclusive proof thereof. 
 (2) Any person aggrieved by an or der passed by the  
3
[
4
[Director, Excise 
and Taxation]], under clause (a) of sub -section (1) may appeal to the 
5
[Commissioner], within thirty days of the order, exclusive of the time required to get 
a copy thereof, in such manner as may be prescribed. 
 (3) The order of the 
6
[
7
[Director, Excise and Taxation]], and in case of 
appeal, the order of the 
8
[Commissioner], shall be final. 
 (4) The Government may call for and examine the records of any 
proceedings under sub-section (2) for the purpose of satisfying th emselves as to the 
legality or propriety of any order passed by the 
9
[Commissioner]. If in any case it shall 
appear to the Government that any order should be modified, annulled or reversed, 
the Government may pass such order thereon as may be deemed fit: 
 Provided that the Government shall not under this sub -section pass an order 
revising or modifying any order affecting any person without giving such person an 
opportunity of being heard. 
11. Rules.– (1) The Government may, by notification, make rules
10
– 
(a) with reference to all matters expressly required or allowed by this Act to 
be prescribed; and  
(b) to carry out all or any of the purposes of this Act. 
 (2) In particular and without prejudice to the generality of the foregoing 
powers the Government shal l have power to make rules regarding the manner in 
which any tax payable under this Act may be recovered as also the form of the 
accounts to be maintained and the returns to be submitted by book-makers. 
                                                           
1Substituted for the words “Deputy Director Excise and Taxation” by the West Pakistan (Adaptation of Laws) Ordinance, 1962 
(XXV of 1962), published in the Gazette of West Pakistan (Extraordinary), dated June 2, 1962, pp. 2195-2200, s. 3(1) read with 
Schedule I. 
2Substituted for the words “Divisional Excise and  Taxation Officer” by the West Pakistan Horse -Race Betting Tax (Second 
Amendment) Ordinance, 1964 (X of 1964), published in the Gazette of West Pakistan (Extraordinary), dated August 1, 1964, 
pp. 2543-2545, s. 6. 
3Substituted for the words “Deputy Director  Excise and Taxation” by the West Pakistan (Adaptation of Laws) Ordinance, 1962 
(XXV of 1962), published in the Gazette of West Pakistan (Extraordinary), dated June 2, 1962, pp. 2195-2200, s. 3(1) read with 
Schedule I. 
4Substituted for the words “Divisiona l Excise and Taxation Officer” by the West Pakistan Horse -Race Betting Tax (Second 
Amendment) Ordinance, 1964 (X of 1964), published in the Gazette of West Pakistan (Extraordinary), dated August 1, 1964, 
pp. 2543-2545, s. 6. 
5Substituted for the words “Dir ector, Excise and Taxation, West Pakistan” by the West Pakistan (Adaptation of Laws) 
Ordinance, 1962 (XXV of 1962), published in the Gazette of West Pakistan (Extraordinary), dated June 2, 1962, pp. 2195-2200, 
s. 3(2) read with Schedule II.  
6Substituted for the words “Deputy Director Excise and Taxation” by the Ordinance ibid., s. 3(1) read with Schedule I. 
7Substituted for the words “Divisional Excise and Taxation Officer” by the West Pakistan Horse -Race Betting Tax (Second 
Amendment) Ordinance, 1964 (X o f 1964), published in the Gazette of West Pakistan (Extraordinary), dated August 1, 1964, 
pp. 2543-2545, s. 6. 
8Substituted for the words “Director, Excise and Taxation, West Pakistan” by the West Pakistan (Adaptation of Laws) 
Ordinance, 1962 (XXV of 1962), published in the Gazette of West Pakistan (Extraordinary), dated June 2, 1962, pp. 2195-2200, 
s. 3(2) read with Schedule II.  
9Ibid.  
10For rules, see Gazette of West Pakistan, 1958, Part I, pp. 450-452. 
12. Repeal and Savings.– (1) The following enactments are hereby repealed:– 
(a) The Sind Betting Tax Act, 1938
1
. 
(b) The Punjab Horse-Race Betting Tax Act, 1950
2
. 
3
[(c) The Sind Betting Tax Act, 1938
4
 as applicable to Karachi District.] 
 (2) Notwithstanding the repeal of the Acts mentioned in sub -section (1)  
everything done, action taken, obligation, liability, penalty or punishment incurred, 
inquiry or proceeding commenced, officer appointed or person authorised, 
jurisdiction or power conferred, rule made and order or notification issued under any 
of the provisions of the said Acts, shall, if not inconsistent with the provisions of this 
Act, be continued, and so far as may be, be deemed to have been respectively done, 
taken, incurred, commenced, appointed, authorised, conferred, made or issued 
under this Act. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                           
1Sind XV of 1938. 
2Punjab XXX of 1950. 
3Added by the West Pakistan Horse-Race Betting Tax (Amendment) Ordinance, 1964 (VI of 1964), published in the Gazette of 
West Pakistan (Extraordinary), dated May 25, 1964, pp. 1693-1694, s. 3.  
4Sind Act XV of 1938.