Motor Vehicle Tax In Punjab: Buying cars and two-wheelers in Punjab will cost more, with the state government hiking the motor vehicle tax by up to one percentage point. According to the latest notification from the Department of Transport, the new rates of motor vehicle taxes will be levied on the actual price of the vehicle. The hike in motor vehicle taxes came ahead of the festival season.
According to new rates, tax on a four-wheeler costing up to Rs 15 lakh has been raised from 9 to 9.5 per cent, which means the price of a vehicle will increase by up to Rs 7,500. The price of a four-wheeler costing above Rs 15 lakh but up to Rs 25 lakh will go up by about Rs 25,000, as the tax rate has been hiked by one percentage point to Rs 12 per cent.
The department has added another category for vehicles costing above Rs 25 lakh and a rate of 13 per cent tax has been levied on it, as per the notification. For two-wheelers costing up to Rs 1 lakh, the motor vehicle tax has been increased by 0.5 percentage points to 7.5 per cent.
The tax rate will be 10 per cent if the price of a two-wheeler is above Rs 1 lakh but not more than Rs 2 lakh, as per the notification. A two-wheeler costing above Rs 2 lakh will attract 11 per cent motor vehicle tax, according to the notification.