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It’s been more than a week and the local car market is still observing the after shocks of the recent fiscal budget 2024-25. Few days back we informed you regarding no increase in General Sales Tax (GST) and the recent update comes from provincial budget.

Registration Fee Hike

The Punjab government recently passed a new budget with significant updates to car and bike registration fees, marking a shift from the past 70 years of policy. These changes will take effect on July 1, 2024. For scooter and motorbike owners, registration fees will now be a flat Rs. 1,500, making the process easier and more consistent.

Thinking of selling your car, motorbike, or scooter within the first 10 years? Be aware of the new 10% annual transfer fee. This means there will be an extra yearly charge on top of the standard transfer costs.

The registration fee for your car will now depend on its engine size. Cars with engines under 1,000cc will have a set fee of Rs. 20,000. For those with engines between 1,000cc and 2,000cc, the fee will be a percentage (0.02%) of the purchase price. This means the more expensive your car, the higher the registration fee. Cars exceeding 2,000cc will have an even steeper fee, calculated at 0.03% of the purchase price.

The Punjab government is modernizing the province’s tax structure, and these changes are part of that plan. The additional revenue generated from the higher fees will be used to fund various development projects across Punjab.

Another Update

A Couple of days back, in his speech in the National Assembly today, Finance Minister Muhammad Aurangzeb announced that “the reduced sales tax rate will continue to apply on HEVs mentioned in Schedule 8 and Serial No 73.”

This is a sigh of relief for the local companies as the prices of local hybrid cars will not increase after this announcement. However, if the government had decided to impose the increased rate of GST, the prices of local HEVs would have skyrocketed.

What do you think about the recent move regarding car and bike registration fee? Tell us in the comments section.