Punjab Budget 2003-04: motor vehicle tax raised; stamp and entertainment duties cut

LAHORE (June 15 2003) : The Punjab government has rationalised the rates of certain taxes, duties and fees. Motor Vehicle Tax has been enhanced and Stamp and Entertainment Duties have been reduced, while Professional Tax base has been broadened on importers and exporters in Punjab Budget for 2003-04.

According to the Finance Bill 2003, Motor Vehicle Tax has been increased on different categories of vehicles.

Under the proposed new rates, private vehicles with engine power not exceeding 1000 cc would pay Rs 600, engine power exceeding 1000 cc and not exceeding 1300 cc would pay Rs 1200, engine power exceeding 1300 cc and not exceeding 1500 cc would pay Rs 2000, engine power exceeding 1500 cc and not exceeding 2000 cc would pay Rs 3000, engine power exceeding 2000 cc and not exceeding 2500 cc would pay Rs 4000, and vehicle with engine power exceeding 2500 cc would pay Rs 5000.

The same rate applies to motor cabs and commercial vehicles with the capacity of not more than six persons as well, apart from one category of 'engine power not exceeding 1000 cc' under which it would be Rs 700.

The non-air-conditioned vehicles with capacity more than six persons would pay the revised rate of Rs 180 per seat while air-conditioned vehicles would pay Rs 300 per seat.

The government has also increased the transfer fees of cars with engine capacity up to 1000 cc from Rs 1000 to Rs 1200 and motorcycles/scooters from Rs 100 to Rs 200.

Moreover, the rate of Entertainment Duty on horse racing has been reduced from 200 percent to 50 percent on the payment for admission, and Finance Minister Sardar Bahadur Dreshak said that this step has been taken to promote horse breeding, which is one of the most profitable areas of livestock farming.

The government has also reduced the rate of Stamp Duty on Memorandum and Article of Association of a company from Rs 4000 to Rs 1000 for each document, which the Finance Minister termed as a positive step that would encourage establishment of companies in Punjab.

The rate has been brought down at the level of Sindh government.

Importers and exporters have also been brought in the net of Professional Tax, under which they would pay the tax on the amount of import or export carried out in the preceding financial year.

Thus, imports or exports exceeding Rs 100,000 but not exceeding Rs 1 million would pay Rs 2000, import or export exceeding Rs 1 million but not exceeding Rs 5 million would pay Rs 3000 and import or export exceeding Rs 5 million would pay Rs 5000.

The Finance Minister said that these taxation measures were being taken in the public interest and there would be no effect on the common man.

The Act has exempted the local governments from the payment of Electricity Duty.

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