North News

Chandigarh, August 22

The cost of buying new cars and motorcycles in Punjab has gone up following the state’s transport department’s decision to raise the motor vehicle (MV) tax on both four-wheelers and two-wheelers. The updated tax rates were mentioned in a notification released on Thursday, The Indian Express reported.

Under the revised tax structure, personalized four-wheelers priced up to ₹15 lakh will now incur an MV tax of 9.5% of the vehicle’s actual price (excluding other taxes). For vehicles priced between ₹15 lakh and ₹25 lakh, the tax has been raised to 12% of the actual price.

The Tribune reported that this change means buying a four-wheeler costing up to ₹15 lakh has become more expensive by an additional ₹7,000 to ₹20,000. Vehicles priced between ₹15 lakh and ₹25 lakh will see the highest impact, with a 1% increase in tax.

A new tax category has also been introduced for luxury vehicles, including SUVs priced above ₹25 lakh, which will now be subject to a 13% tax. For instance, a vehicle costing ₹30 lakh will attract a tax of ₹3.9 lakh, the news outlet said.