The Punjab state government has hiked the motor vehicle tax on passenger cars and two-wheelers with immediate effect
The taxes have been hiked by 0.5 to 1% and will be applicable on the actual cost of the vehicle
The motor vehicle tax on passenger vehicles costing up to ₹15 lakh has gone up from 9 to 9.5%.
For four-wheelers costing above ₹15 lakh and up to ₹25 lakh, the tax has gone up to 12% from the previous 11%
The Punjab Transport Department has added another category for cars costing above ₹25 lakh, which will now attract a tax of 13%
With two-wheelers, models costing up to ₹1 lakh, the motor vehicle tax has increased from 7 to 7.5%
Two-wheelers costing between ₹1 lakh and up to ₹2 lakh will now attract 10% tax
The department has also introduced a new category for premium two-wheelers costing above ₹2 lakh and will attract an 11% tax
The hike comes just ahead of the festive season when automotive purchases are at their highest through the year