Imported Luxury Cheaper Cars

The Excise Taxation and Narcotics Control Department ET&NCD Punjab is thinking over removing the luxury tax from all imported and luxury vehicles across Punjab. The luxury tax will be removed and it will promote the local motor car industry and they will import expensive cars and increase the imports of the vehicles. This importing of car will help to outflow the foreign exchange.

Not Registering in Punjab
It is noted that the buyers avoid to pay the tax in Punjab and it prefers to go to Islamabad to get registered his car. It is done because of the difference in the tax on provincial level and it causes negative effect on the foreign exchange. The government representatives said that due to less registration rates and quarterly token tax payments, most of the owners of the imported cars prefer to get registered their cars at ET&NCD Islamabad that takes yearly token tax payments.
New Tax
A new tax was levied on the imported car with engine capacity of over 1300 cc and it was implemented in June 2016. The taxation policy states that the buyers were liable to pay the amount of Rs.70,000 for vehicle over 1300 cc and Rs.150,000 for vehicle over 1500 cc, Rs.200,000 for 2000 cc and above and Rs.300,000 for a vehicle engine capacity of over 2500 cc.
This tax is added with the list of custom duty, token tax, income tax, professional tax, registration fee and withholding tax, which are already charged from the importers. A meeting was conducted in May 2017, in which fine was considered for car owners, who got registered their cars other than Punjab. Under the provision of Motor Vehicle Ordinance Act 1965 that the vehicle has to reapply to ET&NCD for its registration if it stays in the province over 120 days.
No Action on Tax Evasion
There is another suggestion to take action against the owners of the vehicle, who avoid to pay the tax and makes them register with the provincial excise department but this proposal was refused.
The officials of the excise and taxation reported that number of registrations is bound to increase if the tax is removed and it adds the revenue to excise department.