With the implementation of the new budget 2023-24, the Excise and Taxation Department has revised vehicle transfer fee in Punjab.
According to the notification, there has been a significant increase in the transfer fee in Punjab for all kinds of vehicles, including motorcycles, scooters, cars, and rickshaws.
The revised vehicle transfer fee mentioned in the table below has become applicable from 1 July 2023.
Vehicle Transfer Fee in Punjab – Budget 2023-24
| Vehicle Type | Old Transfer Fee (PKR) | Revised Transfer Fee (PKR) |
|---|---|---|
| Motorcycle / Scooter | 150 | 500 |
| Up to 1000cc / Rickshaw | 1,200 | 2,500 |
| 1000cc – 1800cc | 2,000 | 5,000 |
| Above 1800cc | 3,000 | 10,000 |
| Commercial | 4,000 | 5,000 |
Change in Vehicle Token Tax
Meanwhile, the token tax for vehicles has also seen a revision as private vehicles, which were previously paying token tax of Rs. 2,500 per seat will now pay token tax based on the engine capacity (CC) of the vehicle.
Registration Fee
Furthermore, the registration fee for vehicles with engine capacities ranging from 1501 to 2000 cc has been reduced from 3% to 2%.
WHT
Moreover, there has been a revision in the Withholding Tax (WHT) collected by dealers in invoice of the vehicle. According to the revision, the vehicles with engine capacity over of 2001cc or above will be charged a significantly higher WHT.
It is pertinent to mention that WHT for vehicles with engine capacities of up to 2,000 will remain unchanged for both Filers and Non-Filers. However, a significant change takes place for vehicles with engines of 2001cc or above.
The vehicles with engine capacity of 2001 to 2500, which were paying Rs. 300,000 (Filer) and Rs. 900,000 (Non-Filer) will now have to pay WHT at the rate of 6% (Filer) or 18% (Non-Filer) of the vehicle’s value. Similarly, the vehicles that have an engine capacity of 2501 to 3000cc will now have to pay 8% (Filer) and 24% (Non-Filer) WHT, which is up from Rs. 400,000 and 1,200,000 for Filers and Non-Filers, respectively.
Lastly, all vehicles with engine capacity of over 3000cc will be charged a WHT at the rate of 10% (Filer) and 30% (Non-Filer), up from Rs. 500,000 and Rs. 1,500,000 for Filers and Non-Filers.
While the common man won’t be affected by the increase in WHT for vehicles with a larger engine capacity, the increase in vehicle transfer fee in Punjab will certainly put pressure on the masses, especially motorcycle and rickshaw owners.
This is copy of the notification:
Read more: Hyundai Revises Sonata 2.5L Price in Pakistan With New Advance Tax.
Chutiyas of the 21st century.