Punjab increases vehicle taxes: New rates raise costs for Two-Wheelers and Four-Wheelers. Before the festive season begins, the Punjab government has increased the cost of purchasing new vehicles. Buying a new vehicle will now be more expensive as the government has raised the motor vehicle tax, also known as road tax. Enthusiasts of two-wheelers to luxury cars will need to loosen their wallets.
In this context, the Secretary of the Punjab Transport Department, Dilraj Singh, issued a notification on Thursday. Earlier, on February 12, 2021, the government had amended the Punjab Motor Vehicle Taxation Act-1924 to introduce new motor vehicle taxes. The government has now approved another amendment with revised tax rates.
According to the notification, the road tax for different categories of vehicles has increased by 0.50 to 1.25 percent. The new motor vehicle tax structure has been set between 7.50 to 13 percent. This new road tax on vehicle purchases will be effective immediately, and buyers across Punjab will need to pay the new road tax within one to two days.
Under the motor vehicle tax structure, previously, only two categories of road tax were applied to vehicles costing up to or above one lakh rupees. Now, the government has introduced a new category for expensive two-wheelers. Vehicles costing over two lakh rupees will incur an 11 percent road tax.
The biggest impact will be seen on four-wheelers. Vehicles costing up to fifteen lakh rupees will become 7,000 to 20,000 rupees more expensive. Similarly, the road tax for vehicles priced between fifteen and twenty-five lakh rupees has been increased by one percent, making these vehicles 20,000 to 32,000 rupees more expensive. Luxury SUVs and vehicles costing over twenty-five lakh rupees will now be taxed at 13 percent. For instance, a car priced at thirty lakh rupees will incur a tax of 3.90 lakh rupees.
New Road Tax for Two-Wheelers (Percentage)
Motorcycles up to one lakh rupees: 7.50%
Two-wheelers between one and two lakh rupees: 10%
Two-wheelers above two lakh rupees: 11%
New Road Tax for Four-Wheelers (Percentage)
Four-wheelers up to fifteen lakh rupees: 9.50%
Vehicles between fifteen and twenty-five lakh rupees: 12%
Luxury vehicles above twenty-five lakh rupees: 13%