The Punjab government has approved amendments to impose a 0.90 percent cess on imports and exports. This move aims to boost infrastructure development revenue across the province.
Broader Scope of the New Levy
The amended Punjab Infrastructure Development Cess Act 2026 now covers goods produced, manufactured, consumed, imported, or exported through Punjab. It also applies to imported goods merely passing through the province’s territory.
Enforcement Mechanisms Strengthened
Authorities will appoint cess officers with powers to monitor, inspect, and verify goods.
Checkpoints can be established at key entry and exit points, and officers may seek help from Customs and law enforcement agencies.
The Punjab Assembly passed the bill through a majority vote. It awaits final approval from the Governor to become law.
Punjab Parliamentary Affairs Minister Mujtaba Shuja ur Rehman clarified that this is not a new tax.
The cess has existed for years, and the government is only restructuring the system for better collection.
He highlighted the revenue gap with Sindh province. Sindh collects around Rs. 170 billion annually from similar charges, while Punjab currently gathers only Rs. 9-10 billion.
Business Community Reactions
Importers and exporters have expressed concerns over increased costs. Many fear the new cess will raise operational expenses and affect competitiveness in regional trade.
The government maintains the funds will support infrastructure projects.
Better roads, logistics hubs, and facilities could eventually benefit the same traders paying the cess.
Analysts suggest the expanded scope, including transit goods, could significantly increase Punjab’s revenue. However, implementation challenges at checkpoints may cause delays for legitimate trade.
This development comes amid ongoing economic pressures in Pakistan. Provinces are exploring new ways to generate funds without heavily relying on federal transfers.
The cess will primarily apply to goods moving through formal customs channels. Small-scale or informal traders might see minimal immediate impact.