Updated: Wednesday November 18, 2015/AlArbia'a
Safar 06, 1437/Budhavara
Karthika 27, 1937, at 05:50:27 PM
[1][1]The
(Act XXX of
2015)
[26 June 2015]
An Act to levy and collect infrastructure
development cess on transportation of goods manufactured, produced or consumed
in, imported into or exported out of the
It is necessary
to levy and collect infrastructure development cess on transportation of goods
manufactured, produced or consumed in, imported into or exported out of the
Punjab; to provide resources for the maintenance, development and improvement
of the infrastructure required, amongst other things, to cater for the load of
goods traffic; and to deal with other purposes;
Be it enacted
by Provincial Assembly of the
CHAPTER I
PRELIMINARY
1. Short title,
extent and commencement.– (1) This Act may be cited as the Punjab
Infrastructure Development Cess Act 2015.
(2)
It extends to whole of the
(3)
It shall come into force from the 1st day of July 2015.
2. Definitions.– In this Act:
(a)
“Authority” means the Punjab Revenue Authority established under the Punjab
Revenue Authority Act 2012 (XLIII of
2012);
(b)
“cess” means the infrastructure cess levied and collected under the Act and
includes default surcharge or penalty or any other sum payable under the Act or
the rules;
(c)
“Customs Act” means the Customs Act, 1969 (IV of 1969), and rules made or
notifications issued under that Act;
(d)
“FBR” means the Federal Board of Revenue established under the Federal Board of
Revenue Act, 2007 (IV of 2007);
(e)
“goods” means goods classifiable under the First Schedule to the Customs Act
and includes the goods defined under that Act;
(f)
“Government” means Government of the
(g)
“infrastructure” includes roads, streets, bridges, culverts, lights on passage,
beaches, public parks, place of public recreation or enjoyment and convenience,
eating places, landscape, forests, fisheries, delta conservation, lakes,
breeding places of aquatic life, wildlife and its sanctuaries, public schools,
vocational and technical training centers and projects, libraries, museums and
similar institutions controlled and financed by the Punjab, control of traffic
for smooth flow and other movement of goods, public order, police force, patrol
for safety of goods, stands for loading and unloading of goods, parking places,
markets, water supply, hospitals and dispensaries and development, improvement,
maintenance and protection of such infrastructure;
(h)
“person” includes:
(i) an
individual;
(ii) an
association of persons;
(iii) a
company incorporated, formed, organized or established in
(iv) the
Federal Government;
(v) a
Provincial Government;
(vi) a
local authority in
(vii) a
foreign government, political subdivision of a foreign government, or public
international organization;
(i)
“rules” means the rules made under the Act;
(j)
“Sales Tax Act” means the Sales Tax Act, 1990 (VII of 1990); and
(k)
“value” means the price including cost, insurance, freight, customs duty, sales
tax or any other levy determined by customs authorities in the customs goods
declaration form or in absence of it, in the bill of lading of goods being
imported or exported provided that in case of goods manufactured, produced or
consumed in Pakistan, the value shall be determined for the purpose of levy and
payment of sales tax under the Sales Tax Act.
CHAPTER II
SCOPE OF CESS
3. Scope of cess
and allied matters.– (1) Subject to this Act and the rules, there shall
be levied and collected a cess on the goods manufactured, produced or consumed
in the Punjab, goods imported into or goods exported out of the
(2) The cess shall be deposited in the Provincial Consolidated
Fund to be utilized by the Government for maintenance and development of
infrastructure and other activity ancillary to the infrastructure in such
manner as may be deemed proper by the Government.
4. Person liable
to pay cess.–
(1) Every person manufacturing, producing or consuming goods and every person
importing goods into the Punjab through any port, dry-port, airport or custom
station including bonded warehouse and every person exporting goods out of the
Punjab shall be liable to pay the cess.
(2) Nothing contained in
this section shall prevent the collection of cess from a different person if
that person is made separately, jointly or severally liable for payment of the
cess under this Act or the rules.
5. Payment of cess.– (1) In case of goods
imported into or exported out of the Punjab, cess shall be payable in the same
manner and at the same time as if it were a customs duty regardless whether or
not the goods are liable to such duty.
(2) In case of goods manufactured, produced or consumed in the
Punjab, cess shall be payable in the same manner and at the same time as if it
were a sales tax payable under the Sales Tax Act.
(3) The amount of cess shall be deposited in such head of account
as may be specified by the Government.
(4) Notwithstanding anything contained in this section, the
Authority may, in respect of any goods, category or class of goods and subject
to such conditions, restrictions or limitations, if any, specify any other
manner or time or mode of payment of cess.
6. Exemptions.–(1) Notwithstanding
anything contained in sections 3 and 5 and unless otherwise specified or
directed by the Government through a notification in the official Gazette, the
goods exported out of the Punjab and the goods manufactured, produced or
consumed (other than goods imported on payment of cess) in the Punjab shall be
exempt from cess.
(2) The cess shall not be payable in respect of imported fresh
food items like fresh vegetables and fresh fruits.
(3) The Authority may, with the approval of the Government and
subject to such conditions as it may impose, by the notification in official
Gazette, exempt any goods, or category or class of goods from the payment of
whole or any part of the cess.
CHAPTER III
OFFENCES AND PENALTIES
7. Default
surcharge.–(1)
Where any person has not paid any amount of cess due under this Act, he shall,
in addition to the cess due or any other penalties payable under the Act, pay
default surcharge at the rate of two percent of the payable amount of the cess
per month.
(2) Where necessary, the amount of default surcharge shall be
prorated but in a case the period of default is less than one month, the amount
of default surcharge shall not be prorated.
Explanation.–For the purposes of this
section, the cess due does not include penalty.
8. Penalty.–Where a person has failed
to pay any amount of cess, he shall be liable to pay a penalty not exceeding
ten percent of the amount of cess due and payable.
9. Waiver of
default surcharge or penalty.–The Authority may, subject to such conditions as
it deems appropriate, waive the payment of default surcharge on cess under
section 7 or penalty under section 8 in any case or class of cases.
CHAPTER IV
MISCELLANEOUS
10. Application of
provisions of other laws.– (1) In case of goods imported into or exported out
of the
(a)
manner, time and mode of payment;
(b)
declarations, processing and management thereof;
(c)
keeping of records, accounts and documents;
(d)
enforcement and adjudication including appeals;
(e)
penalties and prosecution; and
(f)
all other ancillary matters.
(2) Where required in case of
goods manufactured, produced or consumed in the Punjab, the Sales Tax Act and
the rules made and notifications, orders and instructions issued under the
Sales Tax Act shall, as nearly as possible, apply to collection and payment of
cess under this Act in so far as they relate to the matters covered in
subsection (1).
(3) This Act and the rules
shall be treated as fiscal law for the purpose of clause (h) of section 2 of
the Punjab Revenue Authority Act 2012 (XLIII
of 2012).
11. Power to make
rules.–
(1) The Authority may, with the approval of the Government and by notification
in the official Gazette, make rules for carrying out the purposes of this Act.
(2) The Government shall lay all the rules made during a
financial year in Provincial Assembly of the
(3) The
Authority may issue general orders, circulars or instructions, directions or
clarifications to carry out the purposes of this Act or the rules.
12. Bar on
adjustment.– The amount of cess payable or paid under this Act
shall not be adjusted against any other tax, levy or cess payable to the
Government under any other law, and any other tax, levy or cess shall not be
adjusted against any amount of the cess payable under the Act.
13. Intersystem
connectivity.–The
Authority may enter into such arrangements for real time connectivity of its
computerized system with the system of FBR or any other department,
organization, institution or authority as it may deem proper for the purpose of
regular or efficient monitoring of the collections and receipts of the cess.
14. Savings.–Where the Government or the
Authority takes any action, makes any decision or orders, issues any instructions,
directions, clarifications or notifications in pursuance of or in exercising of
powers conferred under any provision of any law in respect of any matter
relating to the cess and allied issues covered under this Act or the rules,
such actions, decisions, orders, instructions, directions, clarifications and
notifications shall be deemed to have been validly issued to serve the purposes
of this Act and the rules.
[1][1]This Act was passed by the
Punjab Assembly on 24 June 2015; assented to by the Governor of the
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