Punjab:Used cars to cost more; Tax on sale of pre-owned cars

Written by: Pti
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Chandigarh, Oct 4: Buying a used car in Punjab is going to cost you more, with the state Excise and Taxation Department levying tax on the sale of pre-owned cars.

Instead of imposing Value Added Tax, the state government has put pre-owned cars into the special category and levied a flat rate of tax on sale of second hand cars.

The department has levied Rs 3,000 tax per car on sale of second hand car with capacity less than 1,000 cc and Rs 5,000 per car on sale of pre-owned cars having capacity more than 1,000 cc, an official of the Punjab Excise and Taxation Department said today.

"We want to tap available source to collect tax, though revenue from pre-owned cars may not be much ...," Punjab Excise and Taxation Commissioner A Venuprasad told PTI today.

The department's initial focus will be on first tapping leading car players like Maruti, Mahindra.


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