|
Getting your Trinity Audio player ready...
|
Latest Update on Vehicle Taxation in Punjab
As part of its latest budget, the Punjab government has introduced a new token tax system effective July 1st. The updated policy aims to increase tax revenue and promote transparency in vehicle transactions.
Invoice Value-Based Taxation
The new policy shifts the focus from engine capacity-based taxation to invoice value-based taxation. Vehicles with engines between 1,000 and 2,000 cc will be taxed at 2% of the invoice value, while those above 2,000 cc will be taxed at 3%.
Read Also: Punjab Chief Minister Maryam Nawaz Announces Distribution Date for E-Bikes
Lifetime Token Tax Update
The lifetime token tax for vehicles up to 1,000 cc has increased from Rs. 15,000 to Rs. 20,000. New owners must pay the full token tax again upon transfer of ownership. However, if the transfer occurs within 10 years of purchase, a 10% annual discount will apply. After 10 years, the lifetime token tax is no longer applicable.
Impact on Car Owners
This change is expected to significantly impact car owners, especially in the used car market. Newer, more expensive vehicles may attract higher taxes, leading to a shift in buying behaviors. Buyers may opt for less expensive vehicles to save money on taxes.
Government’s Objective
The government aims to increase tax revenue and promote transparency in vehicle transactions. The new policy may also encourage buyers to opt for less expensive vehicles, reducing the financial burden on vehicle owners.