The Punjab Excise and Taxation department has recently released a circular outlining the revised registration fees and withholding tax rates for vehicles in the region. These changes are aimed at simplifying the taxation system and providing relief to vehicle owners. This details of the adjustments and discuss how they will impact motorists in Punjab.
Reduced Registration Fees:
One of the key updates mentioned in the circular is the reduction in registration fees for vehicles with engine capacities ranging from 1501 to 2000 cc. Previously set at 3%, the registration fee for this category has now been lowered to 2%. This reduction is intended to offer financial relief to mid-range vehicle owners and encourage ownership within this segment.
Revised Withholding Tax Rates:
In addition to the revised registration fees, the circular also 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:
| CC Range |
WHT-B1 REVISED RATES W.E.F
01.07.2023 |
| COLLECTED BY DEALER IN INVOICE |
| Till 30.06.2023 |
W.e.f 01.07.2023 |
| Filer |
Non-Filer |
Filer |
Non-Filer |
| UP TO 850 |
10,000 |
30,000 |
10,000 |
30,000 |
| 851-1000 |
20,000 |
60,000 |
20,000 |
60,000 |
| 1001-1300 |
25,000 |
75,000 |
25,000 |
75,000 |
| 1301-1600 |
50,000 |
150,000 |
50,000 |
150,000 |
| 1601-1800 |
150,000 |
450,000 |
150,000 |
450,000 |
| 1801-2000 |
200,000 |
600,000 |
200,000 |
600,000 |
| 2001-2500 |
300,000 |
900,000 |
6% of Value |
18% of Value |
| 2501-3000 |
400,000 |
1,200,000 |
8% of Value |
24% of Value |
| Above 3000 |
500,000 |
1,500,000 |
10% of Value |
30% of Value |
Implications for Vehicle Owners:
The revised registration fees and withholding tax rates in Punjab will have implications for vehicle owners across the region. Prospective buyers of mid-range vehicles can benefit from the reduced registration fees, resulting in cost savings during the registration process.
Existing vehicle owners must stay updated with the revised withholding tax rates to ensure accurate tax payments and avoid penalties or misunderstandings. It is important to understand the engine capacity of your vehicle and the corresponding tax rates, as this will help you plan your finances accordingly.
The Punjab Excise and Taxation department's circular regarding the revised registration fees and withholding tax rates brings welcome news for vehicle owners in the region. The reduced registration fees for mid-range vehicles aim to provide financial relief and promote ownership within this segment. It is crucial for both prospective and existing vehicle owners to stay informed about these changes to ensure compliance with the revised tax rates. By understanding the implications of these adjustments, motorists in Punjab can navigate the taxation system more effectively and plan their finances accordingly.