Overview
It seems the Punjab Excise and Taxation Department announced some amendments in the budget for car registration and Withholding Tax. Recently a circular is issued by the Excise department with revised taxes for vehicles. the issued documents showed a positive purpose and offer relief to the vehicle owner.
The revised car registration fees will provide relief to vehicle owners of 1501cc to 2000cc engine capacity. It is not the first-time government provides relief to a range of low-capacity engine vehicles. but several times taxes increase for high-range engine capacity vehicles just to promote small cars purchase.
Vehicle Registration Fees Reduce
The issued circular mentioned a significant reduction in registration fees for vehicles owner from 1501cc to 2000cc as mentioned in the above paragraph. The previous registration fee for this segment’s car was 3% and after a 1% reduction now it has been set to 2%. The reduction in registration fees imperative impact on vehicle owners of this range and add financial relief. This would be great to encourage ownership of this range segment cars.
With Holding Tax Revised
The circular highlights the 2nd significant change in withholding tax for Punjab vehicles. The rates are utensil on the engine capacity of the vehicles. It has been revised on the basis of engine capacity of 2001cc to 3000cc and above. The tax will be charged on the value of the vehicle. Here is the updated withholding tax for vehicles.
| Vehicles 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 | |||
| Filer | Non-Filer | Filer | Non-Filer | |
| UP TO 850cc | 10,000 | 30,000 | 10,000 | 30,000 |
| 851cc-1000cc | 20,000 | 60,000 | 20,000 | 60,000 |
| 1001cc-1300cc | 25,000 | 75,000 | 25,000 | 75,000 |
| 1301cc-1600cc | 50,000 | 150,000 | 50,000 | 150,000 |
| 1601cc-1800cc | 150,000 | 450,000 | 150,000 | 450,000 |
| 1801cc-2000cc | 200,000 | 600,000 | 200,000 | 600,000 |
| 2001cc-2500cc | 300,000 | 900,000 | 6% of Value | 18% of Value |
| 2501cc-3000cc | 400,000 | 1,200,000 | 8% of Value | 24% of Value |
| Above 3000cc | 500,000 | 1,500,000 | 10% of Value | 30% of Value |
Conclusion
The revised taxes implement on vehicles across the region. All new and old vehicles will be affected by the new rates. It’s good for already vehicles owner to get to know the updated taxes to avoid inconvenience in the payment of taxes. Tax amendments make streamline the tax system. Taxes are important for the government to generate income. For economic stability, this is necessary thing to collect taxes in a way government can utilize for the citizen’s benefit. The major flaw back of our economy is the unstable taxation system.
