The Punjab Assembly has approved major amendments to the Punjab Infrastructure Development Cess Act 2026, introducing a 0.90 percent cess on imports and exports across the province.
The decision is expected to expand the provincial government’s revenue collection system and strengthen infrastructure funding. The amended law was passed through a majority vote during a Punjab Assembly session.
Under the revised framework, the cess will apply to goods produced, manufactured, consumed, imported, or exported through Punjab.
The move has already triggered discussion among traders, importers, exporters, and business groups concerned about the financial impact on commercial activity.
Punjab Expands Infrastructure Cess Framework Across Trade Activities
According to the amended legislation, the new cess will not only apply to goods entering or leaving Pakistan through Punjab but also to imported products passing through the province’s territorial limits.
Officials say the broader scope is designed to improve revenue generation and create a more effective infrastructure financing system.
The Punjab government believes the updated law will help support road networks, transport systems, logistics infrastructure, and public development projects across the province.
The amendments also grant expanded powers to government authorities responsible for enforcement.
Under the new law, cess officers will be appointed to monitor, inspect, and verify goods subject to the levy. These officers will have the authority to check shipments and ensure compliance with the updated taxation framework.
Authorities will also be permitted to establish checkpoints at entry and exit routes as well as other designated locations throughout Punjab.
Government officials say these checkpoints are intended to improve monitoring and prevent revenue leakage.
The amended law further allows cess officers to seek assistance from customs authorities and law enforcement agencies whenever necessary during inspections or enforcement operations.
Punjab Government Defends New Levy as Revenue Reform
Mujtaba Shuja ur Rehman, Punjab’s Parliamentary Affairs Minister, defended the amendments and rejected criticism describing the cess as a completely new tax.
According to the minister, the infrastructure cess has existed for many years. He said the government is only restructuring and improving the collection system to make it more effective and transparent.
He explained that the levy mainly targets goods moving through customs channels, including imports and exports connected to trade activity.
The minister also highlighted the large difference in revenue collection between Punjab and Sindh under similar taxation systems.
According to official figures shared during the assembly session, Sindh reportedly generates around Rs170 billion annually through comparable charges. In contrast, Punjab currently collects only between Rs9 billion and Rs10 billion under its existing framework.
The Punjab government believes the revised system will significantly increase provincial revenue and reduce financial gaps in infrastructure development.
Officials argue that stronger revenue streams are necessary to support economic growth, improve transportation facilities, and modernise public infrastructure.
Traders and Businesses Expected to Monitor Economic Impact
The decision is expected to attract close attention from Pakistan’s business community, particularly importers, exporters, transport companies, and industrial sectors operating through Punjab.
Economic experts say additional charges on goods movement may increase operational costs for businesses. Some analysts also warn that higher transportation and trade costs could eventually affect consumer prices.
However, government officials insist that improved infrastructure and better enforcement mechanisms will benefit the economy in the long term.
The bill will officially become law after receiving final approval from the Governor of Punjab.
Business groups are now expected to study the detailed implementation process and assess how the revised cess structure may impact trade operations in the province.
The development marks another major fiscal policy move by the Punjab government as authorities continue efforts to strengthen provincial revenue collection systems.
