Punjab's Motor Vehicle Tax Hike Increases Vehicle Costs

Motor vehicle taxes in Punjab have been increased by up to one percentage point, according to a new notification by the Department of Transport. The hike affects cars and two-wheelers, with new rates being applied to the vehicles' actual price. The increases come just ahead of the festival season.

The cost of buying cars and two-wheelers in Punjab is set to rise after the state government announced a hike in motor vehicle tax by up to one percentage point.

The Department of Transport issued a notification specifying that the new rates will be levied on the actual price of the vehicle. This hike comes into effect just before the festival season.

For four-wheelers costing up to Rs 15 lakh, the tax rate has been increased to 9.5%, translating to an additional Rs 7,500. Vehicles priced between Rs 15 lakh and Rs 25 lakh will see a tax hike to 12%, adding up to Rs 25,000 more. A new category for cars above Rs 25 lakh will attract a 13% tax rate.

For two-wheelers, the tax rate has increased to 7.5% for those priced up to Rs 1 lakh. Two-wheelers costing between Rs 1 lakh and Rs 2 lakh will be subject to a 10% tax rate, while those above Rs 2 lakh will incur an 11% tax rate.