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Punjab

Neither hiked nor any proposal to increase vehicle tax in Punjab

Punjab News Express | March 12, 2021 04:54 PM

CHANDIGARH:There is no proposal to increase the tax on private vehicles (Personalized Motor Vehicles) in Punjab and the tax rates, which were notified on February 12, 2021, are still applicable in the state.

Clearing the air over ‘The Punjab Motor Vehicle Taxation (Amendment) Bill, 2021’ was passed by Punjab Vidhan Sabha on March 10, 2021, an official spokesperson of the Transport department said that this bill empowers the Punjab Government to increase or decrease the tax rates at its own level. Now, there will be no need to bring a bill in Punjab Vidhan Sabha for this purpose in future. The bill also fixes the maximum rates of the vehicle tax but these tax rates have not been implemented.

The spokesperson said that the tax rates implemented in the state at present are 7 to 11 per cent, depending on the price of the private vehicles. Neither the rates have been hiked nor made any proposal to increase the tax rates. As per the notification dated February 12, 2021, currently 7% tax has been levied on a private motorcycle worth less than Rs. 1 lakh and if the price is more than Rs. 1 lakh then 9% tax has been charged. Similarly, 9% tax has been levied on private cars worth up to Rs. 15 lakh and 11 per cent tax on private cars worth more than Rs. 15 lakh.

He said that the baseless rumors circulating on social media about the tax hike are creating confusion among the general public. Citing the bill, rumors are being spread that the tax on private vehicles has been increased to 20 per cent, which is just a maximum rate of the vehicle tax that can be increased, it has not been implemented. According to the bill, the Punjab government at its own level, if it desires so, can increase or decrease the rates to a certain extent, as mentioned in the bill, without bringing a bill in the Vidhan Sabha. For instance, non-transport vehicles (private cars, motorcycles) can be taxed up to a maximum of 20 per cent but at present the tax is being charged as per the notification dated February 12, 2021.  

All the tax rates will remain the same, reiterated the spokesperson, while clarifying that the sole aim to bring the bill is that in future, the state government can increase or decrease the tax rate, if it desires so, at its own level with the permission of the competent authority without bringing a bill in the state legislative assembly.

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