AAP govt has increased the motor vehicle tax on two-wheelers and four-wheelers in Punjab. Those planning to buy an SUV or a luxury sedan costing more than Rs 25 lakh will now have to pay 13% tax as part of the revised rates, given a go-ahead by the governor.
As per the notification issued by the transport department on Thursday, those buying a four-wheeler costing upto Rs 15 lakh will have to shell out 9.5% tax and it would be 12 % for vehicles priced between Rs 15 to Rs 25 lakh.As per estimates, a car costing up to Rs 15 lakh has become costlier by around Rs 7,500. The tax has been hiked by up to 1% for cars priced between Rs 15 to Rs 25 lakh, which will make the new vehicle costlier by up to Rs 25,000.
In case of two-wheelers, if value of motorcycle does not exceed Rs 1 lakh, rate of motor vehicle tax would be 7.5%, 10 % tax will be charged on two-wheelers priced between Rs 1 lakh to Rs 2 lakh and rate of tax will be 11% for motorcycles costing over Rs 2 lakh. For two-wheelers up to Rs 1 lakh, the tax has been increased by 0.5% and for those between Rs 1 lakh and 2 lakh, the tax has been increased by 1%.
With the hike in the tax ahead of the festival season, the Punjab govt hopes to generate additional revenue.