The Excise and Taxation Department Punjab has implemented revisions to the transfer fees for various types of vehicles in accordance with the budget set by the caretaker government.
Revised Transfer Fees
In a significant move, the department has increased the transfer fees for the first time in 19 years, effective from July 7, 2023. The transfer fee for motorcycles has been raised from Rs150 to Rs500, while vehicles up to 1000cc will now incur a fee of Rs2,500, up from Rs1,200.
Incremental Increase Based on Vehicle Size
For vehicles with engine capacities up to 1800cc, the transfer fees have been raised by Rs3,000 to Rs5,000. As for vehicles above 1800cc, the excise department will now collect Rs10,000 instead of the previous Rs3,000. Similarly, commercial vehicles will experience a Rs1,000 increase, with the transfer fee set at Rs5,000.
Reduction in Registration Fee and New Tax Provisions
On the other hand, the provincial authority has decreased the registration fee for vehicles ranging from 1501cc to 2000cc by one percent, bringing it down to 2% from the previous rate of 3%.
Additionally, the government has extended a 95% discount on motor vehicle tax for electric vehicles until June 2025. Furthermore, a new withholding tax has been introduced for vehicle registration above 2001cc.
Adjustment from Seat-based to Engine-based Taxation
Previously, private vehicles were subject to a token tax of Rs 2,500 per seat. However, the taxation system has now transitioned to one based on the engine capacity of the vehicles.
