A cheering news for the new car buyers as the Punjab government has tremendously reduced the tax on imported and luxury vehicles in the mini-budget 2018-2019.
The decision has been made to increase the revenue collection of the province as people tend to register their vehicles in Islamabad due to the higher rate of registration tax in Punjab.
According to the new budget scheme, the tax on 1300 to 1500 cc vehicles will now be Rs. 15,000 instead of existing Rs. 70,000 while 1,500 to 2000 cc vehicles are proposed to be taxed Rs. 25,000 reduced from Rs. 1 lac, 25 thousand. In addition, the tax on 2000 CC to 3200 cc vehicles is being lessened to Rs. 1 Lac.
Although the registration tax has been slumped, the provincial government has decided to increase the yearly token taxes on the cars exceeding 1300cc engine capacity.
Token tax on 1300cc to 1500cc which was Rs. 6000, will now be elevated to Rs. 15000. On 1500cc to 2000cc cars, the token tax will be Rs. 25,000, and on vehicles above the 2500cc engine bracket, the yearly token tax will be Rs. 300,000, reportedly which previously was Rs. 35,000.
With the implementation of new token taxes, people having Honda City car will be giving much larger tax in comparison to owners of Toyota XLi and GLi because of the slight difference in engine capacities.
- Honda city: 1339 cc
- Toyota XLi and GLi: 1298cc
Moreover, the government has provided Rs. 68 billion to the road sector and allocated Rs. 35.5 Billion to the transport sector of the province. Rs. 33 billion have been allocated for the Orange Line Project of previous government which has faced severe criticism over slow construction.
After winning the 2018 elections and constituting Punjab government, its the first budget proposal by PTI where they have allocated Rs. 2 trillion budget for the remaining fiscal year.