Small Cars Like Alto And Nano To Be More Expensive In Punjab


Pick any state from our country’s map and you will always find a majority of people from that very state who never owned a four wheeler but are planning to get one soon. This is a common story for most of the people. Now talking about Punjab, it is one of the liveliest places I have ever been too and people there are simply mad about cars.

They love modifying cars and driving them but again as I said above, there is still a majority who is yet to buy their first ever four wheeled vehicle. Unfortunately for aspiring small car buyers in Punjab, things are going to get a little more expensive.

Small Cars Become Expansive in Punjab

As per the latest news entry level budget hatchbacks such as Tata Nano and Maruti Alto are going to get pricier as the current percentage of tax is going to be increased. Yes you heard it right, Punjab state government is soon going to the increase the tax imposed on small cars to 6 percent. The government will not follow the slab system for the imposition of tax and would instead impose a uniform tax rate of  6%.

All passenger vehicles in Punjab will now have 6 % tax irrespective of its type. Under the new tax regulation a person opting for a car or two-wheeler priced below Rs. 5 lakh will have to pay flat 6 % tax.

There has been a serious hike in the tax rates by the Punjab government lately, and it is as follows:

  • 6 % motor vehicle tax on passenger cars from the earlier 2 % (a threefold rise)
  • 6 % motor vehicle tax on two wheelers from the earlier 4 %

Why the Punjab government chose to hike the tax rate? Well the government states that majority of the vehicles bought in Punjab are under the abovementioned categories and in order to maximize revenue they are taking this step.

This uniform tax rate implementation is going to affect small car buyers whereas wealthy people who plan to get premium cars will easily get away. We will update you with the latest updates from Indian car market, stay tuned to Car Blog India.