LAHORE: The Punjab Excise and Taxation Department has collected rs 4398.78 million of motor vehicle tax in first six months of the fiscal year 2014-15.
The Punjab Excise is facing shortfall in collection of motor vehicle taxes during the first six months of the fiscal due to heavy taxes on registration and transfers of the vehicles. During the first six months of the year, the department collected only 37 percent of the target which is 8 percent with a reduction than the same period of 2013-14.
During the fiscal year of 2013-14, the Excise Department recovered 45 percent of the target with the recovered amount of Rs 4804.734 million which is almost Rs 406 million extra than the same period of the ongoing fiscal year. Upto December 31, the Punjab Excise Department collected Rs 4398.784 million against the target of Rs 11836.183 million. For the year of 2014-15, the Punjab government had set the target of Rs 11836.183 million for the excise dept to recover in the sense of Vehicle Taxes.
The Excise Department has been authorized to collect Token Tax, new registration of vehicles, transfers of vehicles and life time taxes on vehicles but in the first half of the year, the Excise Dept badly failed to meet the target.
According to excise officials, basic reason of the shortfall is imposition of heavy taxes on new registration and transfers of vehicles which forced the department to face huge shortfall worth billions of rupees. The federal government has imposed advance tax of Rs 10,000 on registration of new vehicles from 600cc to 850cc and same amount of tax on transfer of property of the vehicles used up to five years. On 581cc to 1000cc vehicles Tax on registration of new vehicles is Rs 20,000 -25,000 and same on transfer of old vehicles Rs 50,000-100,000 tax has been imposed on registration and transfer of vehicles varied from 1000cc to 1300cc from 1601cc to 1800 cc.
Tax imposed by FBR is from Rs 100,000 to 200,000. 2000cc to 2500 cc vehicles are paying Rs 200,000 to Rs 300,000. More than 2500cc vehicles on registration and transfers are paying Rs 300,000 to Rs 5, 00,000 on registration and transfer.
The same situation is in the field of token tax which is based on filer and non-filer citizens. Taxes on registration, transfers and token taxes have increased. After this, the Excise Dept is facing loss worth billions of rupees from July 2014 to now and it compels the government of Punjab to inform the federal government on reservations as well.
Additional Director General Excise and Taxation told Customs Today that revenue deficit will be overcome in next two months. Registration of new vehicles will be increased in coming days as new models of bikes and cars are in. “People like to register their vehicles in new year that will increase number of registration of vehicles and this the revenue and department will overcome the short fall.”
