New Delhi: Now buying two-wheelers and four-wheelers in Punjab will be costlier as the AAP government has increased the motor vehicle tax on them under the new tax system to recover revenue loss.
The tax is on the actual cost of the vehicle, excluding taxes, an official of the state Transport Department said.
Earlier, the government has imposed a green tax of INR 3,000 on registration renewal of petrol-run private four-wheelers with engine size up to 1,500 cc after 15 years. For diesel vehicles, the green tax will be INR 4,000.
Those eyeing larger sedans, sports utility vehicles and luxury cars, costing above INR 25 lakh, a tax of 13 % on the cost of the vehicle has been imposed. This means for a vehicle costing INR 30 lakh, the tax would be INR 3.9 lakh.
As per the notification for the motor vehicle tax, a four-wheeler costing up to INR 15 lakh has become costlier between INR 7,000 and INR 20,000. The maximum impact would be on the vehicle costing between INR 15 lakh and INR 25 lakh, wherein the tax has been increased by one %.
In the two-wheeler‘s category, buyers of a vehicle costing up to INR 1 lakh will have to shell out tax of 0.5 %. The vehicle costing between INR 1 lakh and 2 lakh, the tax will be 1%.
A new category has been introduced for high-end two-wheelers costing above INR 2 lakh, wherein the tax slab is 11 % of the cost of the vehicle.
The official admitted the government aims to surge revenue with the hike in vehicle taxes.
However, industry experts say additional tax could hit a manufacturing base, especially for small cars.
