The Punjab Excise and Taxation Department in a recent circular unveiled revised registration fees and withholding tax rates for vehicles.
The revised rates are aimed at streamlining the taxation system and providing relief to vehicle owners. According to the latest circular, registration fee for vehicles with engine capacities ranging from 1501cc to 2000cc has been decreased. Previously set at 3%, the registration fee for this category has now been lowered to 2%. This cut seeks to provide financial relief to owners of mid-range vehicles and encourage vehicle ownership within this segment.
In addition to the cut in registration fee, the circular highlights changes in the withholding tax rates for vehicles in Punjab. The new rates are structured based on engine capacity and vehicle type. Here are the updated withholding tax rates as provided in the circular:
The revised registration fees and withholding tax rates in Punjab will have implications for vehicle owners across the region. Those considering the purchase of mid-range vehicles will benefit from the reduced registration fees, which can result in cost savings during the registration process.
For existing vehicle owners, it is essential to stay updated with the revised withholding tax rates to ensure accurate tax payments and avoid any penalties or misunderstandings. Understanding the specific engine capacity of your vehicle and the corresponding tax rates will help you plan your finances accordingly.
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