The 2024–25 budget was just passed by the Punjab Assembly, signaling a significant change in the past 70 years’ worth of mostly unaltered policy.
The new budget includes some major changes, one of which is an increase in automobile registration fees that will take effect on July 1, 2024.
For scooters and motorbikes, the registration cost is set at Rs. 1,500. The purpose of this modification is to guarantee a consistent cost structure and streamline the registration procedure for smaller cars.
A 10% annual charge is now required for the first time in order to transfer a registration within ten years. This means that there will be an extra, yearly fee associated with any ownership transfer for vehicles, motorbikes, or scooters during this time.
Vehicles with engines smaller than 1,000cc will now have to pay a registration fee of Rs. 20,000 to the Excise Department. In addition, if the registration is transferred within the first ten years, there will be an annual transfer cost of 10%.
The registration charge for cars with engines between 1,000 and 2,000cc will be equal to 0.02% of the purchase price. With this modification, the registration cost will be in line with the vehicle’s market price thanks to a proportionate charge structure based on the vehicle’s value.
For cars larger than 2,000cc, the registration charge is equal to 0.03% of the purchase price.
The Punjab government is working to update the province’s tax structure, and this includes modifications to the automobile registration fee structure. It is anticipated that the higher fees will raise money, which will be utilized to finance other development initiatives.
