Punjab govt jacks up transfer charges for vehicles, motorcycles

LAHORE: The caretaker Punjab government has substantial increased in the ownership change fee for motorcycles and vehicles.

According to a private TV channel, the excise department has abolished the fee system for collecting token tax, stating that token tax must now be paid based on horsepower of the vehicle.

The change of ownership fee for motorcycles and scooters has been raised from Rs150 to Rs500. Similarly, for vehicles up to 1000cc, the change of ownership fee has been increased from Rs1,200 to Rs2,500.

The change of ownership fee for vehicles ranging from 1001cc to 1800cc has been raised from Rs2000 to Rs5000. However, the ownership fee for vehicles with more than 1800cc horsepower has been reduced to Rs10,000.

In addition, the registration fee for vehicles with 1501cc to 2000cc has been reduced by 1 per cent. The registration fee for vehicles in the 1501cc to 2000cc range has been reduced from 3% to 2%.

Furthermore, a new withholding tax has been implemented on new registrations and transfers for vehicles with 2001cc or higher horsepower.

Sources said that these changes in fees and taxes aim to generate revenue for the government and streamline the vehicle ownership transfer process. However, they may have an impact on vehicle owners and potential buyers, who will need to consider the increased costs associated with change of ownership.

They said that the new fee structure and tax implementation will have implications for vehicle owners and buyers in Punjab, and it remains to be seen how these changes will be received by the public.