The government of Punjab has decided to eliminate the luxury tax on the high-end vehicles. In order to increase the high-end vehicles registration this step will be taken by the Punjab government.
In order to evade taxes the high-end vehicle owners will get their vehicle registration from other provinces other than Punjab like the federal capital Islamabad.
Provincial Excise and Taxation Minister, Hafiz Mumtaz addressed this issue while talking to the media. He said that initially the taxes will be reduced and then by May 2019 they will be completely ended.
This will be a revolutionary step by the Punjab government as earlier Rs 3 to Rs 5 lac was charged in form of luxury tax on high end vehicles.
Here is the new and old tax rate on different vehicles.
1300 to 1500cc
Earlier Tax Rate: Rs. 70,000
New Tax Rate: Rs. 15,000
1500 to 2000cc
Earlier Tax Rate: Rs. 100,000
New Tax Rate: Rs. 25,000
2000 to 2500cc
Earlier Tax Rate: Rs. 200,000
New Tax Rate: Rs. 100,000
Earlier Tax Rate: Rs. 300,000
New Tax Rate: Rs. 300,000
According to Hafiz, this will ultimately lead more people to register their vehicles in Punjab and increase the revenues.