The government of Punjab has decided to let go of the luxury tax which is applied to the high-end vehicles. Although the rule will be fully applicable by May 2019, it will initially slash the tax.
This news was delivered by the Provincial Excise and Taxation Minister Hafiz Mumtaz himself.
According to Hafiz Mumtaz, many people try to avoid these taxes by getting their cars and vehicles registered form other provinces such as Islamabad because here the luxury tax is not implemented.
When they don’t pay, the collected revenue is way less than expected. He plans that with providing such opportunities, people will start registering their cars in their province Punjab and this is a huge boost in the revenue aspect.
It is also interesting to mention here that Punjab government has recently increased the lifetime token fees under the budget 2018-19.
For example, the 1000cc lifetime tokens were increased from Rs. 10,000 to Rs. 15,000 whereas the motorcycle lifetime tokens were increased to Rs. 15,000 from Rs. 12,000.
With the relaxation in the luxury taxes, the list of the vehicle concerning the previous taxes and currently expected taxes are as under:
|Vehicles||Previous Tax Rate||Current Tax Rate|
|1300 to 1500cc||Rs. 70,000||Rs. 15,000|
|1500 to 2000cc||Rs. 100,000||Rs. 25,000|
|2000 to 2500cc||Rs. 200,000||Rs. 100,000|
|Over 2500cc||Rs. 300,000||Rs. 300,000|