95% Relaxation in Registration of Electric Vehicles

  • by Sharoon Jan
  • 2 months ago
  • News
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95% Relaxation in Registration of Electric Vehicles

95% Relaxation in Registration of Electric Vehicles: The Punjab government continues the tax relaxations of 95 percent. For registration and token tax of electric vehicles in the proposed finance bill 2022.

The government has increased stamp duty from one percent to two percent on urban immovable properties. And upwards revised the one-time tax on construction on luxury houses of 2-Kanal and above. The steps taken by the government will create a fiscal space of over Rs 20 billion.

Further, the government has also defined the engine capacity of electric vehicles for the purpose of calculating the tax. According to the definition. 1 kilowatt shall be equal to engine power of 18.77 ccs. A new subsection in the Punjab Motor Vehicles Taxation Act, 1958 (XXXII of 1958) in section 3. Subsection (3), the new subsection (4) is added to define the engine capacities of electric vehicles.

According to the proposed bill, the government has increased the rate of tax. On residential houses 0f 2-Kanal and above after eight years. The last time it was revised was in 2014 according to the new proposed tax rate. This will be applicable to the completion of the construction of luxury houses from July 1 2022 onwards. However, the old rates would be applied to luxury houses submitted the completion till June 30, 2022.

According to the proposed rates, the tax rate of Lahore district has increased to Rs 300,000 Kanal to a maximum of 2.5 million. From Rs 200,000 Kanal to Rs 2 million maximum on 2-Kanal or above with covered area more than. Six thousand square feet of luxury houses. For 8-Kanal and above with covered more than twelve thousand square feet, the new tax rate is 400,000 Kanal to a maximum of Rs 4 Million from Rs.300,000 Kanal to a Maximum of Rs 3.6 million. The tax rate of the rating areas of the divisional headquarters district and all the cantonments in the districts of divisional headquarters. Has been increased to Rs 200,000 Kanal to a maximum of Rs 1.8 million from Rs 150,000 Kanal. To Rs 1.5 million maximum for 2- Kanal or above with a covered area of more than Six thousand square feet. For 8 Kanal houses, new tax rates are Rs300,000 Kanal to a maximum of Rs 3.5 million from Rs250,000 Kanal to Rs 3 million maximum. For remaining rating areas and contentment. The new proposed tax rate for 2 Kanal or above with a covered area of more than. Six thousand square feet is Rs 125,000 Kanal to 1.5 million maximum. From Rs 100,000 Kanal to a maximum of Rs 1 million. For 8 Kanal and above with a covered area of more than twelve thousand square feet Rs 225000 Kanal. To a maximum of Rs 2.5 million from Rs 200,000 Kanal to Rs 2 million maximum new tax rate is proposed.

The government is anticipating around 60 million in revenue collections from the measure. Further, the exemptions are given by the government. In the past years for payment of tax through the e-payments system will continue in the tax year 2022-23. The discount equal to five percent of the tax being paid shall be allowed on payment of tax through the e-payment system. The tax is paid on a yearly basis or half-yearly basis as the assessee may choose. On such later date as the government may, by notification. Determine and for the financial year 2022-23, the tax shall be collected as follows.

  • Amount of Annual Tax
  • In the second quarter, the amount of annual tax without any rebate
  • in the third and fourth quarters the amount of annual tax with one percent surcharge per month on the grass payable tax.

Similarly, on motor vehicle tax (token tax), a 5 percent discount is offered on tax paid through e-payment. The token tax will be collected in 2022-23 as a fellow.

  • In the first quarter with ten percent rebate in the amount of annual tax.
  • In the second quarter the amount of annual tax without any rebate.
  • In the third and fourth quarters the amount of tax with such penalty as may be determined under section 9.

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