Punjab Budget 2023 Introduces New Registration and Withholding Tax Rates for Cars
The Excise and Taxation department of Punjab has recently issued a circular announcing revised registration fees and withholding tax rates for vehicles in the region. These changes aim to simplify the taxation system and provide relief to car owners. Let’s delve into the details of these adjustments and explore their impact on motorists.
Reduced Registration Fees:
As part of the budget reforms, the registration fees for vehicles with engine capacities ranging from 1501 to 2000 cc have reduced. Previously set at 3%, the registration fee for this category has now lowered to 2%. This reduction is aimed at providing financial relief to mid-range car owners and encouraging vehicle ownership within this segment.
Revised Withholding Tax:
In addition to the revised registration fees, the circular also highlights changes in the withholding tax rates for vehicles in Punjab. The new rates categorized based on engine capacity and vehicle type. Let’s take a closer look at the updated withholding tax rates, effective from July 1, 2023:
CC RangeFiler (Till 30.06.2023)Non-Filer (Till 30.06.2023)Filer (W.e.f 01.07.2023)Non-Filer (W.e.f 01.07.2023)Up to 850PKR 10,000PKR 30,000PKR 10,000PKR 30,000851-1000PKR 20,000PKR 60,000PKR 20,000PKR 60,0001001-1300PKR 25,000PKR 75,000PKR 25,000PKR 75,0001301-1600PKR 50,000PKR 150,000PKR 50,000PKR 150,0001601-1800PKR 150,000PKR 450,000PKR 150,000PKR 450,0001801-2000PKR 200,000PKR 600,000PKR 200,000PKR 600,0002001-2500PKR 300,000PKR 900,0006% of Value18% of Value2501-3000PKR 400,000PKR 1,200,0008% of Value24% of ValueAbove 3000PKR 500,000PKR 1,500,00010% of Value30% of Value
Note: The withholding tax rates for CC ranges 1001-1300, 1301-1600, 1601-1800, 1801-2000, 2001-2500, 2501-3000, and above 3000 remain the same for both filers and non-filers.
Implications for Vehicle Owners:
The revised registration fees and withholding tax rates introduced in Punjab’s budget for 2023 will have significant implications for car owners in the region. Prospective buyers of mid-range vehicles can benefit from the reduced registration fees, leading to cost savings during the registration process.
Existing vehicle owners should stay updated with the revised withholding tax rates to ensure accurate tax payments and avoid penalties or misunderstandings. It is crucial to understand the specific engine capacity of your vehicle and the corresponding tax rates to effectively plan your finances.