Punjab to increase Motor Tax rate on big Cars
Pakistan Times National News Desk

LAHORE: Punjab Government is considering increasing the rate of motor vehicle tax on luxury cars from the coming financial year.

The Resource Mobilisation Committee of the Punjab Government, headed by Provincial Law Minister Raja Basharat, has recommended the proposal of increasing the rate of motor vehicle tax on big cars with the objective to increase additional tax revenue.

Punjab Finance Minister Hasnain Bahadur Dareshak disclosed this on Friday in an exclusive chat with The Nation.

The committee has also recommended that the existing rate of tax on motorcycles and small cars should remain unchanged as the provincial government did not want to put any financial burden on common people in the new budget, he added.

Punjab Finance Minister, however, maintained that the provincial cabinet would take the ultimate decision regarding increase in the rate of taxes and actual amount of increase in motor vehicle tax on luxury cars from 2006-07.

He said that minor increase in the rate of public vehicles might be introduced in the coming budget.

He pointed out that different slabs of taxes are being charged on cars, depending on their capacity. He indicated that motor vehicle tax on below 1000cc cars would not be increased in the forthcoming budget.

Dareshak said that there were some four wheelers on which the motor vehicle tax rates had not been revised during the last few years.

The Resource Mobilisation Committee of the province had identified this potential area for increasing tax revenue in the coming financial. The Minister said that the provincial budget would be announced on June 14.

Mr Dareshak also disclosed that the Punjab Government would provide relief to agriculture sector in the coming budget. The nature of the tax relief would be finalised in next few days, he added.

He said that in 2005-06 the Punjab government has set the target of generating 43 billion rupees revenue_ 24 billion rupees tax and 19 billion rupees non-tax revenue as against actual collection of 34 billion rupees revenue in 2004-05.

He, however, said that the target of revenue generating in 2006-07 would become clear only when the provincial cabinet would take final decision regarding the new resource mobilisation proposals of the committee.

Dareshak said that during recent meeting of the National Economic Council the Punjab Chief Minister has requested the NEC to provide maximum funds for the projects that are being launched in the province on cost-sharing basis.

He also said that the NEC has increased allocation of funds for some important projects, pointed out by the Punjab Government.●