Purchasing a small car in Punjab will now pinch your pocket hard as the state government has done away with the slab system and introduced a uniform rate of six per cent. This raises the tax rate for those who are purchasing small cars worth less than Rs five lakh from two to six per cent.
A government official said that since the maximum number of vehicle registrations in the state took place in the two to four per cent category, which comprised small and mid-size cars, the move was expected to generate more revenue for the state.
However, on the other end of the scale, those buying high-end or luxury cars will get a ‘respite’ as their tax rate will come down from eight per cent to six per cent. Depending on the vehicle, the state has also raised the lump sum motor tax by Rs 250 to Rs 7500. These moves are expected to help the state generate revenue of Rs 108 crore more.
