Chandigarh: Buying a vehicle in Punjab has become expensive after the increase in tax

Chandigarh: Days after the collectorate rates for registration of properties were hiked, the state has raised motor vehicle tax on two-wheelers and four-wheelers with immediate effect. Prospective vehicle buyers and dealers are much disappointed, as the tax has been hiked just ahead of the festive season, when maximum sales are reported. The tax is levied on the actual cost of the vehicle excluding tax, a senior official of the transport department said. Last time, the road tax was revised in 2021. Now buying a four-wheeler costing up to Rs 15 lakh has become costlier by Rs 7,000 to Rs 20,000.

The biggest impact will be on vehicles priced between Rs 15 lakh and Rs 25 lakh, where the tax has been hiked by 1 per cent. Starting a new category for high-end vehicles like SUVs costing more than Rs 25 lakh, where a tax of 13 per cent has been imposed on the vehicle price. For a vehicle costing Rs 30 lakh, the tax will be Rs 3.9 lakh. For two-wheelers, the hike is comparatively less. For two-wheelers costing up to Rs 1 lakh, the tax has been increased by 0.5 per cent and for vehicles costing between Rs 1 lakh and Rs 2 lakh, the tax has been increased by 1 per cent. A new category has been created for expensive two-wheelers costing more than Rs 2 lakh, in which the tax is 11 per cent of the vehicle cost. Officials said there has been pressure from the government to increase revenue generation from such taxes.