The Punjab government has granted relaxation to taxpayers in motor vehicles tax in order to promote the use of EVs in the province during the FY 2021-22.
According to details, taxpayers will be given a discount equal to 5% of the motor vehicles tax being paid under the Punjab Motor Vehicle Taxation Act (PMVTA) 1958.
Moreover, the Punjab government will collect motor vehicles tax in FY 2021-22 as following:
- A 10% rebate in the amount of total annual tax will be provided in the first quarter.
- No rebate will be given and the amount of total annual tax will be collected in the second quarter.
- Penalty determined under Section 9 of PMVTA 1958 along with the amount of total annual tax will be collected in the third and fourth quarters.
The Punjab government has also continued the tax relief measures of Rs. 51 billion from the ongoing fiscal year to the upcoming fiscal year.
These measures include relaxation in motor vehicle tax, property tax, and Punjab Sales Tax on Services on various services.
Besides, the Punjab government has also brought different professionals such as doctors and engineers under the tax net.
Previously, such professionals enjoyed complete exemption from professional tax in Punjab. However, they will now have to pay a fixed tax at a rate of Rs. 200 annually.