The Punjab government has approved a 0.90 percent cess on imports and exports after the Punjab Infrastructure Development Cess (Amendment) Act 2026 was passed by a majority vote in the provincial assembly. Officials say the move aims to improve revenue collection and strengthen infrastructure development funding across the province.
According to the legislation, the 0.90 percent cess will apply to imported goods, exported items, and products manufactured, produced, or consumed within Punjab during cross-border trade activity. The law also covers goods passing through the province’s territorial limits, expanding the scope of taxable trade flows.
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Moreover, the Act empowers the relevant authority to appoint cess officers responsible for monitoring, inspecting, and verifying goods at various checkpoints. These officers will ensure compliance with the new tax structure and oversee implementation across entry and exit points within Punjab.
Furthermore, the legislation allows the establishment of checkpoints at border entry and exit locations as well as other designated areas for better enforcement. Officials confirmed that cess officers will also have the authority to seek assistance from customs authorities and law enforcement agencies where necessary to ensure effective monitoring.
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Additionally, the amendment introduces changes to the Punjab Infrastructure Development Cess Act 2015, while final approval of the bill remains subject to the Governor of Punjab. Government representatives stated that the revision aims to modernise the collection system rather than introduce a completely new tax structure.
Meanwhile, Punjab Minister Mujtaba Shuja ur Rehman said the cess is not a new levy and already exists, with reforms being introduced only to improve efficiency. He further claimed that other provinces collect significantly higher revenue under similar systems, citing Sindh’s reported 170 billion rupees compared to Punjab’s 9 to 10 billion rupees annually.