LAHORE: Punjab Excise and Taxation Department has collected Rs 5.463 billion of motor vehicle tax in first seven months of the fiscal year 2014-15.
Punjab Excise is facing shortfall in collection of motor vehicle taxes during the first seven months of the fiscal due to heavy taxes on registration and transfers of the vehicles. The department collected only 49 percent of the target, 6 percent less as compared with the same period of 2013-14.
Excise Department is authorized to collect token tax, new registration fee of vehicles, transfers of vehicles and life time taxes on vehicles but in the first seven months of the year, 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 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.
Tax imposed by FBR is Rs 100,000 to Rs 200,000 on different vehicles. 2000cc to 2500cc vehicles are paying Rs200,000 to Rs300,000. More than 2500cc vehicles are paying Rs300,000 to Rs500,000 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 and transfer are increased due to Excise Dept is facing loss of worth billions of rupees from July 2014.
