The Punjab Assembly just authorized the 2024-25 budget, signifying a substantial shift from the previous 70 years of almost unchanged policies.
The new budget includes some significant changes, one of which being an increase in automotive registration costs that will go into effect on July 1, 2024.
Registration for scooters and motorcycles is Rs. 1,500. The goal of this change is to ensure a uniform pricing structure and simplify the registration process for smaller vehicles.
A 10% yearly fee is now required for the first time to transfer a registration within ten years. This implies that any ownership transfer of automobiles, motorcycles, or scooters will incur an additional annual cost during this time.
Vehicles with engines less than 1,000cc must now pay a registration charge of Rs. 20,000 to the Excise Department. In addition, if the registration is transferred inside the first ten years, there will be a 10% yearly transfer fee.
The registration fee for automobiles with engines between 1,000 and 2,000cc will be 0.02% of the purchase price. With this change, the registration fee will be commensurate to the vehicle’s worth, bringing it in line with the market price.
The registration fee for automobiles with engines greater than 2,000cc is 0.03% of the buying price.
The Punjab administration is attempting to revamp the province’s tax system, including changes to the vehicle registration fee structure. It is expected that increasing fees would generate revenue that will be used to fund other development efforts.
