Last Updated: Tuesday June 03, 2008
The
(WEST
PAKISTAN ACT IV OF 1958)
C O N T E N T S
Sections
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 collections 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.
[1][1]The
(WEST PAKISTAN ACT IV OF 1958)
[
An
Act to consolidate the law relating to the levy of taxes on
horse-race
betting in [2][2][the
Preamble.— WHEREAS it is expedient to consolidate the
law relating to the levy of taxes on horse-race betting on a uniform basis
throughout [3][3][the
It
is hereby enacted as follows:-
1. Short title, extent and commencement.— (1) This Act may be called [4][4][the
[5][5][(2) It
extends to the whole of the Province of [6][6][the
(3) It shall come into force at once.
2. Definitions.— In this Act unless there is anything
repugnant in 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;
[7][7][(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 [8][8][the Provincial Government of the
(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 [9][9][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 totalizator 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.— [10][10][(1) Government may, by notification from
time to time, direct that a tax not
exceeding twenty per centum (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 respect of bets made in a place within the race
enclosure which the manager has set apart for the purposes of such betting.]
(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.
[11][11][(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 each backer concerned on
account of the betting tax and to have been received by the book-maker
concerned on behalf of the Government.]
[12][12][(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.]
[13][13][4-A Power to Government to issue
directions.— Government may,
by notification[14][14] 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 in the
prescribed manner.]
[15][15][4-B Payment to manager for collections 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—
[16][16][(a) cause accounts to be kept in the prescribed
manner of all sums paid into every totalizator, and all sums paid or agreed to
be paid to the book-makers by backers in respect of bets made by the latter;
(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 [17][17][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 [18][18][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-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 [19][19][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[20][20], 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.
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 [21][21][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 [22][22][:]
[23][23][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 provisions 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
penalty 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 [24][24][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 [25][25][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 [26][26][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 order passed by the [27][27][Director, Excise and Taxation], under clause (a) of sub-section (1) may appeal to the [28][28][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 [29][29][Director, Excise and Taxation], and in case
of appeal, the order of the [30][30][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 themselves as to the legality or propriety of any order passed by
the [31][31][Director, Excise and Taxation]. 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[32][32]—
(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 shall 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.
12. Repeal and savings.— (1) The following enactments are hereby
repealed:-
(a) The
(b) The
[35][35][(c) The Sind Betting Tax Act, 1938, 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.
[1][1]For statement of objects and
reasons, see Gazette of West Pakistan (Extraordinary), dated
This Act was passed by the West Pakistan Assembly on 26th March, 1958; assented to by the Governor of West Pakistan on 8th April, 1958; and, published in the West Pakistan Gazette (Extraordinary), dated 10th April, 1958, pages 513-18.
[2][2]Substituted by the
[3][3]Ibid.
[4][4]Ibid.
[5][5]Substituted by the
[6][6]Substituted by the
[7][7]Substituted by the West
Pakistan Horse-Race Betting Tax (Second Amendment) Ordinance, 1964 (X of 1964),
section 2, for clause (d) which was
previously substituted by the West Pakistan (Adaptation of Laws) Ordinance,
1962 (XXV of 1962), section 3(2) Schedule.
[8][8]Substituted by the
[9][9]Substituted by the
[10][10]Substituted by the
[11][11]Substituted ibid.
[12][12]Added ibid.
[13][13]Inserted by the West Pakistan
Horse-Race Betting Tax (Amendment) Ordinance, 1960 (XXV of 1960), section 4.
[14][14]See Revenue
and Rehabilitation Department Notification No. Tax-XII-10-259(a), dated
[15][15]Inserted by the
[16][16]Substituted ibid.
[17][17]Substituted ibid., for the words “Divisional Excise
and Taxation Officer”, which were previously substituted, for the words “Deputy
Director Excise and Taxation”, by the
[18][18]Ibid.
[19][19]Substituted, for the words
“Director Excise and Taxation West Pakistan”, by the
[20][20]XLV of 1860.
[21][21]Substituted,
for the words “Divisional Excise and Taxation Officer”, by the West Pakistan
Horse-Race Betting Tax (Second Amendment) Ordinance, 1964 (X of 1964), section
5(b), which were previously substituted,
for the words, “Deputy Director, Excise and Taxation”, by the
[22][22]Substituted for the
full-stop, by the West Pakistan Laws (Amendment) Ordinance, 1965 (XXXIV of
1965).
[23][23]Added ibid.
[24][24]Substituted,
for the words “Divisional Excise and Taxation Officer”, by the West Pakistan
Horse-Race Betting Tax (Second Amendment) Ordinance, 1964 (X of 1964), section
5(b), which were previously
substituted, for the words, “Deputy Director, Excise and Taxation”, by the
[25][25]Ibid.
[26][26]Ibid.
[27][27]Substituted,
for the words “Divisional Excise and Taxation Officer”, by the West Pakistan Horse-Race
Betting Tax (Second Amendment) Ordinance, 1964 (X of 1964), section 5(b), which were previously substituted,
for the words, “Deputy Director, Excise and Taxation”, by the
[28][28]Substituted, for the words
“Director Excise and Taxation,
[29][29]Substituted,
for the words “Divisional Excise and Taxation Officer”, by the West Pakistan
Horse-Race Betting Tax (Second Amendment) Ordinance, 1964 (X of 1964), section
5(b), which were previously
substituted, for the words, “Deputy Director, Excise and Taxation”, by the
[30][30]Substituted, for the words
“Director Excise and Taxation,
[31][31]Substituted,
for the words “Divisional Excise and Taxation Officer”, by the West Pakistan
Horse-Race Betting Tax (Second Amendment) Ordinance, 1964 (X of 1964), section
5(b), which were previously
substituted, for the words, “Deputy Director, Excise and Taxation”, by the
[32][32]For rules, see Gazette of West Pakistan,
[33][33]
[34][34]
[35][35]Added by the West Pakistan
Horse Race Betting Tax (Amendment) Ordinance, 1964 (VI of 1964), section 3.
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