Finance bill presented in Punjab Assembly revealed cutting down taxes on imported vehicles in substantial percentage.
The huge cut down in taxes i.e. 50 to 80 percent have been decided in the revised budget for the fiscal year 2018-19. The percentage will vary with different capacity engines.
This step would encourage people to register their cars in Punjab instead of registering in Islamabad or other provinces, according to Pakistan Tehreek-i-Insaf (PTI) members.
- The revised tax for cars from 1,300cc to 1,500cc will now be Rs. 15,000, coming down from Rs. 70,000.
- Taxes on cars with engine capacity from 1500cc to 2000cc is proposed to be Rs. 25,000. Previously it was 150,000.
- Furthermore, those wanting to import cars with engine capacities from 2,000cc to 2,500cc will have to pay as much as Rs 100,000, not 200,000.
Those planning to buys vehicles beyond 2500cc will not get any benefit in lower tax rates, as the government believes that these are bought by elites and they should pay more taxes as per their income.
Five-time increase on stamp duty has been proposed in the bill, presented by Punjab Finance Minister Hashim Bakht. This will generate an additional amount of Rs.1 billion in taxes.
The tax base has been increased by government and Punjab Revenue Authority has been urged to collect Rs.155.57 billion in the current fiscal year.