Used cars to cost more in Punjab
03.10.11
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 on Monday.
The departmentБ─≥s initial focus will be on first tapping leading car players like Maruti, Mahindra & Mahindra by taxing their pre-owned cars sale.
Later on, a special drive may be launched to ask second hand car dealers operating in unorganised market to register themselves with the department to pay tax on sale of pre-owned cars, another official informed.
Punjab used to levy tax on pre-owned cars by way of imposing VAT on value of cars but it withdrew it in year 2006.
Second hand cars market in Punjab has grown manifold in past several years, with the growing tendency among affluent people for disposing of cars after usage of one or two years. Among several places, Ludhiana, Jalandhar are among the biggest markets for second hand cars in Punjab.
Source: Hindustan Times
WHY are they 
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