LAHORE: Punjab Excise and Taxation Department has collected Rs 7.6 billion in wake of motor vehicle tax during nine and half months of current fiscal year 2014-15.
In this period, collection of the motor vehicle taxes is standing at 60 percent of the target for the fiscal year. Even after many strict crackdowns and establishing of checkpoints excise is failed to collect to the satisfactory amount of taxes on motor vehicles.
Even only two months are left in this fiscal year but only 60 percent revenue has generated which is a big failure of the motor branches in Punjab Excise. Punjab Excise is facing shortfall in collection of motor vehicle taxes during the months of the fiscal year due to heavy taxes on registration and transfers of the vehicles.
Excise Department is authorized to collect token tax, new registration fee of vehicles, transfers of vehicles and life time taxes on vehicles.
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 to 25,000 and same on transfer of old vehicles. Rs 50,000 to Rs 100,000 tax is imposed on registration and transfer of vehicles from 1000cc to 1800 cc.
