LAHORE: The Punjab Excise and Taxation Department has collected Rs 6,368.86 million under the head of motor vehicle tax in the first eight months of the fiscal year 2014-15.
The Punjab Excise Department is facing a shortfall in collection of motor vehicle tax due to heavy taxes on registration and transfer of the vehicles.
During the first six months of the fiscal year, the department achieved only 57 percent of the target, which is three percent less than the same period of 2013-14.
During the fiscal year 2013-14, the Excise Department recovered 45 percent of the target and recovered Rs 6.570 billion.
Up till February 28, the Punjab Excise Department collected Rs 6.368.86 billion against the target of Rs 11.836 million (approx). For the year 2014-15, the Punjab government had set the target of Rs 11,836.183 million for the Excise Department under the head of vehicle taxes.
The Excise Department has been authorised to collect token tax, registration fee of new vehicles, transfer fee of vehicles and life time tax on vehicles, but in the first eight months of the year, the department had badly failed to meet the target.
According to excise officials, the basic reason behind the shortfall was imposition of heavy taxes on new registration and transfer of vehicles, which forced the department to face a huge deficit.
The federal government has imposed an advance tax of Rs 10,000 on registration of new vehicles from 600cc to 850cc and the same amount of tax on transfer of property of vehicles used by up to five years.
On 850cc to 1,000cc vehicles, tax on registration of new vehicles is Rs 20,000 to Rs 25,000 and same amount for transfer of old vehicles. Moreover, Rs 50,000 to Rs 100,000 tax has been imposed on registration and transfer of vehicles varying from 1,000cc to 1,300cc, while for those above 1,300cc but below 2,000cc tax, the tax bracket is between Rs 100,000 and Rs 200,000.
Vehicles having horsepower of 2,000cc to 2,500cc are taxed between Rs 200,000 to Rs 300,000.
Moreover, vehicles above 2,500cc vehicles have to pay registration and transfer fee between Rs 300,000 to Rs 5 00,000.
