Registration fee for 1501-2000cc vehicles reduced to 2% by excise department

The Excise and Taxation Department of Punjab has recently introduced adjustments to the fees associated with vehicle registration and transfers, in accordance with the budget proposed by the caretaker government. One notable change is the reduction of the registration fee for vehicles with engine capacities ranging from 1501cc to 2000cc, from 3 per cent to 2 per cent.

Furthermore, the government has extended a significant 95 per cent discount on motor vehicle tax for electric vehicles until June 2025. In addition, a new withholding tax has been introduced specifically targeting the registration of vehicles exceeding 2001cc.

Another modification in the system pertains to private vehicles, which were previously subjected to a flat token tax of Rs2,500 per seat. Under the new regulations, these vehicles will now be taxed based on their respective engine capacities, providing a more accurate and equitable taxation structure.

In addition to the changes in registration fees, the Excise department has also revised the transfer fees for motorcycles, cars, rickshaws, and commercial vehicles. The fee for motorcycles has been raised from Rs150 to Rs500, while vehicles with engine capacities up to 1000cc will now incur a transfer fee of Rs2,500, increased from the previous Rs1,200.

For vehicles falling within the range of 1000cc to 1800cc, the transfer fee has been elevated by Rs3,000, now amounting to Rs5,000. Similarly, for vehicles surpassing 1800cc, the excise department will collect a transfer fee of Rs10,000, compared to the earlier fee of Rs3,000.

Commercial vehicles also witness a revision in their transfer fee, experiencing an increase of Rs1,000, now totaling Rs5,000.

These revisions to the vehicle registration and transfer fees aim to establish a more efficient and equitable system, aligned with the government’s budgetary objectives, while considering factors such as vehicle engine capacity and promoting the adoption of electric vehicles.