Punjab; Huge increase in vehicle transfer fee, committee set up for property tax

Lahore: The Caretaker Cabinet has approved a major increase in the ownership change fee for vehicles, motorcycles in Punjab, while the registration fee for vehicles between 1501 and 2000 cc has been reduced from 3% to 2%.

Apart from this, the caretaker cabinet has formed a ministerial committee to include the 5 marla houses in posh areas in category B and C in the property tax net and sought its recommendations. Property tax exemption for 5 marla houses located in medium areas will be maintained.

The government has also allowed a survey for the application of the new valuation table of property tax in the province after 9 years, after which the excise department has estimated an additional income of 8500 million rupees in terms of property tax, while the government has There has also been a large increase in the vendor fee and steelhead fee imposed on manufacture and sale.

Vehicle transfer fee has been increased after 19 years. The transfer fee of motorcycle, scooter has been increased from Rs 150 to Rs 500 and the transfer fee of vehicle up to 1000 cc has been increased from Rs 1200 to Rs 2500. Transfer fee from 1001 cc to 1800 cc has been increased from Rs.2 thousand to Rs.5 thousand. The change of ownership fee for vehicles of more than 1800 cc horsepower has been increased from Rs 3 thousand to Rs 10 thousand.

The government has reduced the registration fee for vehicles from 1501 cc to 2000 cc by one percent, as a result of which the fee for registration of vehicles from 1501 cc to 2000 cc has been reduced from 3 percent to 2 percent. The caretaker cabinet has extended the period of 95% concession in motor vehicle tax for electric vehicles till June 30, 2025.

A new withholding tax has been implemented on the new registration of vehicles of 2001 cc or more power. The Excise Department has abolished the per-seat system for collecting token tax, after which all vehicles will have to pay token tax on the basis of horse power.

Apart from this, the caretaker cabinet of Punjab has formed a committee under the leadership of 3 provincial ministers on the issue of removing the tax exemption of category B and C of 5 marla houses located in posh areas of the province and collecting property tax from them. Currently, the excise department is collecting property tax only from 5 marla houses of A category. In case of approval by the ministerial committee, another 450,000 houses of 5 marla in posh areas will be included in the property tax net, from which the excise department is estimated to generate additional income of around 5 billion rupees in terms of property tax of 5 marla houses.

Property tax exemption for 5 marla houses located in backward and middle areas of Punjab will continue. The Caretaker Cabinet in 2014 on the proposal to end the remission on property tax and reduce the difference in the current rate of property tax for personal use and rental property by 1/5 to 1/4. Recommendations have been sought from the committee.

The Caretaker Cabinet has given permission for a survey to prepare a new valuation table for property tax in the province. According to the government, the last tax survey was conducted 9 years ago, during which the rent of properties has increased by at least 45% at the rate of 5% per annum and the rate of property tax is very low compared to the current rents.

The new valuation table is expected to generate additional revenue of 8500 million annually to the government. The new property tax valuation table in Punjab will be implemented from January 1, 2024.

The caretaker cabinet has also increased the wind fee of alcohol after a gap of 6 years and the still head fee after 18 years. While the still head fee imposed on beer (alcohol) per liter prepared has been increased from Rs.12 to Rs.25.

According to the notification, the vend fee imposed on the sale of alcohol has been increased from Rs 1600 to Rs 2500, while the vend fee on beer has been increased from Rs 85 to Rs 300 per litre.