Punjab government has announced to increase the registration tax on new vehicles as well as the transfer withholding tax. The excise department has started tax collection after the increase.
The registration and transfer taxes have been spiked by 100% and the collection has been started with immediate effect.
According to the details, the transfer tax on vehicles up to 1000 cc has been increased from Rs50,000 to Rs100,000, while transfer tax on vehicles ranging from 1000 to 2000 cc has been increased from Rs100,000 to Rs200,000.
Similarly, transfer tax on vehicles over 2000 cc has been increased up to 400,000.
The withholding tax over transfer was implemented a while ago but the excise department has started collection of the taxes after the recent increase.
A transfer tax is charged by the state or local government to complete a sale of an asset from one owner to another.
