Punjab Excise and Taxation Department has recently issued a circular announcing revised registration fees and withholding tax rates for vehicles. This move is part of the Punjab Budget 2023, aimed at streamlining the taxation system and providing financial relief to vehicle owners in the region.
One of the key changes highlighted in the circular is the reduction in registration fees for mid-range vehicles. Specifically, vehicles with engine capacities ranging from 1501 to 2000 cc will now have a lower registration fee. Previously set at 3%, the fee has been reduced to 2%. This significant reduction is expected to encourage vehicle ownership within this segment by offering cost savings during the registration process.
|CC RANGE||WHT-B1 REVISED RATES W.E.F 01.07.2023|
|COLLECTED BY DEALER IN INVOICE|
|Till 30.06.2023||W.e.f 01.07.2023|
|UP TO 850||10,000||30,000||10,000||30,000|
|2001-2500||300,000||900,000||6% of Value||18% of Value|
|2501-3000||400,000||1,200,000||8% of Value||24% of Value|
|Above 3000||500,000||1,500,000||10% of Value||30% of Value|
In addition to the revised registration fees, the circular also outlines changes in the withholding tax rates for vehicles in Punjab. The new rates are structured based on the engine capacity and type of vehicle. For instance, vehicles with an engine capacity up to 850 cc will have a withholding tax rate of 10,000 for filers and 30,000 for non-filers. The rates increase progressively with the engine capacity, reaching up to 10% of the vehicle’s value for filers and 30% for non-filers for vehicles with an engine capacity above 3000 cc.
These changes have important implications for both prospective and existing vehicle owners in Punjab. Those considering purchasing mid-range vehicles stand to benefit from the reduced registration fees. Meanwhile, current vehicle owners need to stay updated with the revised withholding tax rates to ensure accurate tax payments and avoid any penalties or misunderstandings. Understanding the specific engine capacity of one’s vehicle and the corresponding tax rates will be crucial in planning finances accordingly.
In conclusion, the Punjab Budget 2023 brings significant changes to vehicle registration and withholding tax rates. These revisions aim to provide financial relief to vehicle owners and streamline the taxation process, making it more transparent and efficient.