The newly-elected Punjab government in its budget 2018-19 has reduced the luxury tax on imported motor vehicles (Tax on Luxury Imported Cars).
Tax on Luxury Imported Cars reduced in Punjab
Following the reduction in luxury tax on imported vehicles, new rates will be as follow;
| Vehicles | Previous tax rate | New tax rate |
| 1300 to 1500 CC Vehicles | Rs 70,000 | Rs 15,000 |
| 1500 to 2000 CC Vehicles | Rs 100,000 | Rs 25,000 |
| 2000 to 2500 CC Vehicles | Rs 200,000 | Rs 100,000 |
| Over 2500 CC Vehicles | Rs 300,000 | Rs 300,000 |
Increase proposed in lifetime token fees of 1000 CC Car and Motorcycle
Similarly, the Punjab government also proposed an increase in lifetime token fees of 1000 CC Car and Motorcycle.
The Punjab government proposed that an amendment be made in Motor Vehicle Taxation Act, under which, the lifetime token fees of 1000 CC Car will be increased from Rs 10,000 to Rs 15,000 and from Rs 12,00 to Rs 15,000 for Motorcycle.
It is worth noting that the Pakistan Tehreek-e-Insaf (PTI)-led Punjab government presented the eight-month budget for Fiscal Year 2018-19 worth Rs 2026.51 billion at the provincial assembly in Lahore on October 16.
The budget was presented by the Punjab Finance Minister Hashim Jawan Bakht, saying that under the budget 2018-19, five percent increase in stamp fees of official documents has been proposed, the insurance sector will be no more tax exempted, Insaf Cards will be introduced across Punjab while farmers will be provided interest-free loan of up to Rs 250,000.
