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Punjab Govt Imposes New Bag of Taxes on Vehicles

- Views 100 - 03 Jul 2019
In the finance bill 2019-20, Punjab government has increased the income tax and withholding tax on the registration and transfer of vehicles, which is equal to increase the burden on the auto mobile. Punjab Govt Imposes New Bag of Taxes on Vehicles.

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The government has changed the taxation system in its finance bill on the annual level and it is very bad news for the consumers of the automobile sector. The latest imposition of the taxes on registration, transfer and annual token tax fee, which is impractical in nature and the purchase of the new and used cars and it would be difficult for the users. The government has made the new policy by dividing the cars into 8 slabs according to engine displacement. In this new taxation system, the imposition of the tax on each seat of the vehicle will be applied. The withholding tax will be fixed on annual basis depending on number of seats of the vehicles. There will be separate fee for the filers and non filers and the non filers are targeted to great extent in this policy with double fee, when you compare what the non filers will have to pay. You can find the complete list of the withholding tax on registration and transfers of autos.
As the clients know that the vehicles from 850 cc to 1000 cc, the consumers will have to pay the fee of Rs.10,000 per seat and there will be withholding tax of Rs.7500 and Rs.15,000 on the vehicles having capacity from 1001 to 1300 cc respectively. The vehicles with the engine displacement from 1301 cc to 1600cc, the clients will pay Rs.12500/- and Rs.25000/- by filers and non filers respectively. The withholding tax will go all way up to Rs.125,000 from the non filers fr vehicles over 3001 cc engine displacement.

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The annual taxation on registration and transfer of vehicle is unjustified and there is large proportion of the population is comprising of the middle class and it is the discouraging step to impose high amount of withholding tax especially on the cars under 1300 cc. It is important to mention that the annual withholding tax will be applicable on the registration and for many times, when it is transferred to the new owner.

The government has announced to collect income tax with the annual token tax of the cars. The cars having range from 1001 cc to 1100 cc engine displacement, the users will pay Rs.1500/- for the filers and Rs.3000/- for the non filers. The cars, which have the engine capacity over 2000 cc, the filers will pay the income tax of Rs.10,000/- and the non filers will pay the income tax of Rs.20,000/-, which will be paid with the annual token tax.
According to the new policy of Punjab government, the general public has shown their rejection and the officials of Excise and Taxation Department are not sure about the facts and figures, which are mentioned in finance bill. The officials ensured if the tax schedule is mentioned correctly in the bill, it will be implemented with immediate effect from 01 July 2019.

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