Vehicle Token Tax in Punjab Now Discounted by 10%
Here is great news for car owners in Punjab! The government is offering a 10% tax rebate on vehicle token tax in Punjab, if you pay through ePay Punjab App. That’s right, you can save money and make your life easier at the same time.
ePay Punjab App is a handy tool that allows you to pay various types of taxes and fees online. Instead of standing in long lines at government offices, you can quickly pay your token tax directly from your phone.
Moreover, this discount is a great way to encourage people to use digital payments and reduce their use of cash. It’s a win-win situation! But hurry! This offer ends on September 30, 2024. Download the ePay Punjab App today and enjoy the savings.
New Vehicle Token Tax in Punjab
In the recent 2024–25 fiscal budget, the provincial government introduced a new tax policy aimed at vehicle owners in the region. This policy mandates that the new owner of a vehicle with an engine capacity of up to 1000cc must pay the full GST again on transfer of ownership.
Annual Vehicle Token Tax in Punjab
Under the new regulations, annual vehicle tax will no longer be based on the engine capacity (cc), but on the invoiced value of the vehicle.
- 1000cc to 2000cc Vehicles: An annual tax of 0.2% of the invoice value will be imposed.
- Exceeding 2000cc Vehicles: The annual token tax will be 0.3% of the invoice value.
Lifetime Token Tax
Additionally, the lifetime token tax for vehicles up to 1000 cc has been increased from the previous Rs. 15,000 to a new Rs. 20,000.
On transfer of ownership of a 1000-cc vehicle, the new owner will have to pay token tax for life with a 10% annual discount if the transfer takes place within 10 years. However, if the transfer is made after 10 years, there will be no lifetime tax on the token.
These changes are expected to have a financial impact on vehicle owners, especially those dealing in used cars. A shift from taxation based on engine capacity to taxation based on invoiced value could result in higher taxes for newer, more expensive vehicles.
What do you think about the recent reduction in vehicle registration tax? Tell us in the comments section.