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A recent circular issued by the Excise and Taxation department, Punjab has unveiled revised registration fees and withholding tax rates for vehicles. These adjustments aim to streamline the taxation system and provide relief to vehicle owners. Let’s delve into the details of these changes and understand how they will impact motorists in the region.
Reduced Registration Fees
One of the significant 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 seeks to provide financial relief to owners of mid-range vehicles and encourage vehicle ownership within this segment.
Revised Withholding Tax
Alongside 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. Let’s explore 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. Those considering the purchase of mid-range vehicles will benefit from the reduced registration fees, which can result in cost savings during the registration process.
For existing vehicle owners, it is essential to stay updated with the revised withholding tax rates to ensure accurate tax payments and avoid any penalties or misunderstandings. Understanding the specific engine capacity of your vehicle and the corresponding tax rates will help you plan your finances accordingly.
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