Punjab vehicle taxes rise, increasing costs for buyers
PTC Web Desk: Just days after raising the collectorate rates for property registration, the Punjab Government has now hiked the motor vehicle tax on both two-wheelers and four-wheelers, effective immediately. This tax increase, coming just before the festival season—a peak time for vehicle sales—has disappointed prospective buyers and dealers alike.
According to a senior official from the transport department, the new tax is calculated based on the actual cost of the vehicle, excluding other taxes. The last time road tax was revised was in 2021.
For four-wheelers priced up to Rs15 lakh, the cost will now increase by Rs 7,000 to Rs 20,000. The most significant impact will be on vehicles priced between Rs Rs 5 lakh and Rs 25 lakh, where the tax has been increased by 1 per cent. Additionally, a new category has been introduced for high-end vehicles like SUVs costing over Rs 25 lakh, which will now be taxed at 13 per cent of the vehicle's cost. For instance, a vehicle priced at Rs 30 lakh will incur a tax of Rs 3.9 lakh.
The increase in tax is relatively lower for two-wheelers. For those costing up to Rs 1 lakh, the tax has been raised by 0.5 per cent, while for two-wheelers priced between Rs 1 lakh and Rs 2 lakh, the tax has gone up by 1 per cent. A new category has also been introduced for high-end two-wheelers costing over Rs 2 lakh, which will now be taxed at 11 per cent of the vehicle's cost.
Officials said the government has been under pressure to boost revenue generation through these taxes.
- With inputs from agencies
