Big shock to bike and car buyers before festive season…?
Before the festive season, drivers have got a big shock. The punjab government has increased the tax on cars and two-wheelers by up to one percent. This will increase the cost of these vehicles in the state. According to the notification of the Transport Department, the new rates of motor vehicle tax will be imposed on the actual price of the vehicle. Motor vehicle taxes have been increased before the festivals.
How much percent has the tax increased?
According to the new rates, the tax on four-wheelers costing up to Rs 15 lakh has been increased from nine percent to 9.5 percent, which means that the price of the vehicle will increase by Rs 7,500. The price of a four-wheeler costing more than fifteen lakh rupees but up to Rs 25 lakh will increase by about Rs 25,000. The reason for this is that the tax rate has been increased by one percent to 12 percent.
Tax increased on two-wheelers as well
According to the notification, the department has added another category for vehicles costing more than Rs 25 lakh and it has been taxed at the rate of 13 percent. Motor vehicle tax for two-wheelers costing up to Rs 1 lakh has been increased by 0.5 percent to 7.5 percent. According to the notification, if the price of a two-wheeler is more than Rs 1 lakh but not more than Rs 2 lakh, then the tax rate will be 10 percent. According to the notification, 11 percent motor vehicle tax will be levied on two-wheelers costing more than Rs 2 lakh. Earlier on february 12, 2021, the government amended the punjab Motor Vehicle Taxation Act-1924 and implemented new motor vehicle tax. Now the government has amended it again and approved the new tax.
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