The Excise and Taxation Department of Punjab has announced a significant revision in the transfer fees for motorcycles, cars, rickshaws, and commercial vehicles. This change aligns with the budget recently unveiled by the caretaker government.
For the first time in 19 years, the department has increased the transfer fee, effective from July 7, 2023. The transfer fee for motorcycles has seen a substantial rise from Rs150 to Rs500. Similarly, the fee for vehicles up to 1000cc has been raised to Rs2,500 from the previous Rs1,200.
The department has also revised the transfer fees for vehicles with higher engine capacities. For vehicles up to 1800cc, the transfer fee has been increased by Rs3,000, making it Rs5,000. For vehicles above 1800cc, the excise department will now collect Rs10,000, a significant increase from the previous Rs3,000. Commercial vehicles have not been exempted from this hike, with their transfer fee being raised from Rs1,000 to Rs5,000.
However, it’s not all increases. The provincial authority has made a concession for vehicles with an engine capacity between 1501-2000cc. The registration fee for these vehicles has been reduced by one percent, bringing it down to 2% from the previous 3%.
In addition to these changes, the government has introduced a new withholding tax on the registration of vehicles above 2001cc. Furthermore, in a move to promote eco-friendly transportation, the government has extended a 95% discount on motor vehicle tax for electric vehicles until June 2025.
Lastly, the token tax system has also undergone a revision. Private vehicles, which were previously taxed at Rs 2,500 per seat, will now be taxed based on the engine capacity of the vehicles.
These changes reflect the government’s efforts to adjust the taxation system in line with the current economic climate while also encouraging the use of environmentally friendly vehicles.
