THE WEST PAKISTAN FINANCE ACT, 1965. 

(WEST PAKISTAN ACT NO. I OF 1965.)

                                                                            (1^st July, 1965.)

CONTENTS

PREAMBLE

SECTIONS

1.         Short title, commencement and extent.

2.         Definitions.

3.         Surcharge on Agricultural Income-tax in certain districts.

[1][4.    ……………]

5.         Tax on cinemas.

6.         Tax on motor vehicles.

[2][7.     …………..

8.         ……………]

9.         Tax on railway fares and freights.

10.     Levy of additional Stamp Duty.

11.     Enhanced tax on motor vehicles.

12.     Tax on hotels.

13.     Amendment of W. P. Act No. IX of 1963.

14.     Penalty.

15.     Bar of suits in Civil Courts.

16.     Application of existing laws.

17.     Power to amend or vary an Act.

18.     Power to make rules.

       SCHEDULE—

FIRST SCHEDULE.

SECOND SCHEDULE.

THIRD SCHEDULE.

  [3][FOURTH SCHEDULE.]

THE WEST PAKISTAN FINANCE ACT, 1965.

(WEST PAKISTAN ACT NO. I OF 1965.)

                                                                            (1^st July, 1965.)

[First published, after having received the assent of the Governor of West Pakistan, in the Gazette of West Pakistan (Extraordinary), dated the 1^st July, 1965.]

AN 
ACT 

to continue, levy and abolish taxes and duties in West Pakistan.

            It is hereby enacted as follows:—

(a)       “Government” means the Government of [5][Khyber Pakhtunkhwa];

(b)      “Collector” means the Collector of the District and includes any officer appointed under any law for the time being in force relating to land-revenue, to discharge the duties of a Collector;

(c)       “prescribed” means prescribed by rules made under this Act.

            Explanation for purposes of this section ‘agricultural year’ means the agricultural year as defined in the Punjab Land Revenue Act, 1887. 

            (2) The provisions of the [7][Khyber Pakhtunkhwa] Agricultural Income tax Act, 1948, [8][.............] shall, so far as may be apply to the assessment, collection and recovery of the surcharge imposed under this section.

[9][4 . . . . . . . . . . . .]

[10][7-8 ………………..]

            (2) The additional Stamp Duty [12][“if any, specified under”] in sub-section (1) shall be chargeable in respect of every instrument of—

(a)       Certificate of sale under Article 18 (c) in respect of each property put up as a (separate lot and sold) granted to the purchaser of any property sold-by public auction by a Civil or Revenue Court, or a Collector or other Revenue Officer, where the purchase money exceeds Rs. 25.00.

(b)      Exchange of property (Article 31);

(c)       Further Charge on a mortgaged property under Article 32 (a) and (b) (1), where at the time of execution of the instrument of Further Charge possession of the property is given or agreed to be given under such instrument;

(d)      Gift (Article 33), not being a Settlement or Will or Transfer under Article 62;

(e)       Lease including an under lease or sub-lease and any agreement to let or sublet under Article 35 (b) and (c), other than where by such lease the rent is fixed and no premium is paid or delivered;

(f)       Mortgage Deed under Article 40 (a), not being an Agreement relating to deposit of Title Deeds, Pawan or Pledge under Article 6, Bottomry Bond under Article 16, Mortgage of a Crop under Article 91, Respondentia Bond under Article 56, or Security Bond under Article 57, when possession of the property or any part or the property comprised in such deed is given by the mortgagor or agreed to be given;

(g)      Settlement under Article 58-A (ii), not being a settlement made for a religious or charitable purpose; 

(h)      Transfer of Lease under Article 63 by way of assignment and not by way of under lease. 

Explanation— Reference to an Article under this sub-section shall be construed as a reference to the respective Article of Schedule I to the Stamp Act, 1899. 

(3) The amount of value of the consideration of the instruments mentioned in sub-section (2) shall be determined in accordance with the provisions of the Stamp Act, 1809.

            (2) Notwithstanding anything contained in sub-section (l)—

(a)       the assessment on a hotel at a hill station shall be made at half the rate applicable to [15][it,] and

(b)      no tax shall be levied on any hotel where the maxi mum daily charge for a single lodging unit [16][…………..] does not exceed

        Rs. [17][24.00]. 

[18][Explanation.— In this sub-section, “maximum daily charge for a single lodging unit” includes charges in respect of fans, air-conditioning light, heat, telephone, bedding and all other payments connected with the lodging unit, except the portion, if any directly attributable to supply of foodstuff.]

(3) The tax levied under sub-section (1) shall be worked out and assessed on the basis of the [19][fifty percent] total number of lodging units available in the hotel, irrespective of the fact whether a lodging unit is actually occupied or not.

(4) The tax shall be paid in one or more installment in the manner fixed by Government.

[20][(5)………] 

(6) The assessment and collection of the tax 6[and] the assessment of the total number of lodging units [21][...... ] shall be made by such agency and in such manner as may be prescribed; and the assessing authority may for this purpose—

(a)       require the owner or the management of a hotel to produce any book of accounts, document or other papers in his possession or power which are believed to contain information relating to the hotel; and

(b)      enter, and by written order authorise, an officer Subordinate to him to enter, any hotel.

(7) Government may, by a general or special older exempt any hotel or any class of hotels from the payment of the whole or any part of the tax payable under this section.

(8) Section 10 of the West Pakistan Finance Act, 1964, is hereby repealed.

Explanation.—In this section, unless there is anything repugnant in the subject or context— 

(a)       “hotel” means an establishment where lodging with board or other service is provided for a monetary consideration but shall not include— 

                                               i.         any home or hostel maintained exclusively for aged or sick persons, or, as the case may be, for students, by or under the control of a charitable, medical or educational institution;

                                             ii.         any rest house, mess or other premises belonging to or in the possession of the Central or a Provincial Government, where lodging, board or other service is provided for Government officials or members of the Defense Forces;

(b)      “lodger” means a person who is in possession or enjoyment of a residential accommodation provided by a hotel;

(c)       “lodging unit” means a bed or other sleeping accommodation which is, or is intended to be, provided to a lodger staying overnight in a room for lodging; and

(d)      “room for lodging” means a room, part of a room or a suite of rooms in a hotel of which is normally let as a unit of residential accommodation and shall include a room of a part of a room or a suite of rooms provided free of charge to any person other than a regular employee of the hotel.

            “(1) A capital gains tax shall be levied on any profits or gains arising from the sale, exchange or transfer of immovable property effected after the thirtieth day of June, 1963, within— 

(a)       urban are specified by Government under section 3 of the West Pakistan Urban Immovable Property Tax Act, 1958; and 

(b)      such other urban areas as may be specified by Government under sub-section (1-A):

Provided that the tax in respect of property in the urban areas specified by Government under clause (a) or clause (b) on or after the first day of July, 1963, shall be levied on the profits or gains arising from the sale, exchange or transfer of the property effected after the date such areas are so specified as urban areas; 

            Provided further that the tax shall not be levied on the transfer of immovable property- in consequence of the distribution of immovable property on the total or partial partition of a Hindu undivided family or the distribution of such property on the dissolution of a firm or other association of persons or on the liquidation of a company or under a deed of gift, bequest, will or transfer on irrevocable trust. 

            (1-A) Government may, by notification in the Official Gazette, specify any built up areas, including land situated within or adjoining such area, to be an urban area for the purposes of this section. 

            Explanation.—For the purposes of this section, “built-up area” shall means land which is occupied as the site of a building of enclosure and is not used for an agricultural purpose or purposes subservient to agriculture”.

            (2) Without prejudice to the generality of the foregoing provision, such rules may provide for all or any of the following matters, namely:— 

(i)  the procedure for the assessment, collection and payment of

     any tax or toll levied under this Act; 

(ii) the classification of hotels for the purposes of section 12;

            (iii) any other matter incidental thereto. 

            (3) Any rules made or deemed to have been made under the corresponding provisions of the West Pakistan Finance Act, 1964, shall, so far as may be, be continued and be deemed to have been a made under this Act.

FIRST SCHEDULE 

(See Section-3)

                                            Surcharge

SECOND SCHEDULE

(See section - 4)

THIRD SCHEDULE 

(See section 7 and 9)

PART—I.

Freight (goods)

PART—II. 

                          Fares [passengers)                           Amount of tax

           Provided that no tax shall be levied where the fare does not' exceed Rs. 3.

                                    [24][FOURTH SCHEDULE]