LAHORE: The Punjab government has aligned its token tax regime with the federal government by transitioning from engine capacity to invoice base value. This move aims to increase tax collection on high-value vehicles, addressing disparities in prices among vehicles with similar engine capacities, announced Provincial Finance Minister Mujtaba Shuja-ur-Rehman during the presentation of the Punjab Finance Bill in the provincial assembly.
Under the new regime, the excise and taxation department plans to introduce a lifetime token tax for subsequent purchasers, applicable for 10 years with a 10 percent depreciation in tax rate each financial year after registration. This initiative aims to enhance revenue by ensuring continued tax payment by subsequent owners.
Additionally, the Mines and Minerals department has proposed amendments to the Excise Duty on Minerals (Labour Welfare) Act, 1967, in response to the 18th amendment, devolving the subject of labor welfare to provinces. The proposal includes an increase in the Mines Labour Welfare Cess from Rs30 to Rs50 per ton to cover the growing costs of welfare projects over the past decades.
Furthermore, amendments to the Punjab Sales Tax on Services Act 2012 are underway to resolve litigation issues faced by the Punjab Revenue Authority, ensuring smoother provincial revenue management.
The Board of Revenue has also recommended amendments to the Court Fees Act, 1870, aiming to revise fees that have remained unchanged for a significant period, reflecting current economic realities.
These measures are part of Punjab’s efforts to streamline taxation policies and enhance revenue streams, ensuring fiscal sustainability and equitable economic growth across the province.
