Ludhiana: New tax policy on goods vehicles worries transporters

City transporters say the Punjab government’s move has done away with the option of payment in instalments. The new rule was implemented on October 1, replacing the earlier system wherein annual taxes could be paid in four quarterly installments.

Two months after the Punjab government introduced a new tax framework for heavy goods vehicles, transporters in the industrial city have raised their concerns over the policy that mandates payment of four years of tax on new goods vehicles and one year tax on the already registered vehicles in a single settlement.

A government official, wishing not to be named, defends the new policy, citing the need for administrative efficiency and enhanced revenue collection. (Picture only for representational purpose)

According to the official notification, this new rule, implemented from October 1, replaces the earlier system wherein annual taxes could be paid in four quarterly installments for both the categories.

Under the revised system, the tax for the new goods vehicles ranges from ₹18,000 to ₹79,200 for four-year index and ₹32,000 to ₹1,40,800 for eight years in advance depending on gross vehicle weight varying between 1.2 tonnes and 25 tonnes.

Similarly, for the already registered vehicles, this tax ranges from ₹5,000 to ₹22,000 for a year timeframe and ₹18,000 to ₹79,200 for four years depending on gross vehicle weight varying between 1.2 tonnes and 25 tonnes.

Although, the government has introduced heavy rebates for four-year and eight-year payments, respectively, transporters argue that the lump sum payment will impose a significant financial burden on the small and medium-scale operators.

He further pointed out that the rebate structure is not a sufficient incentive for those already grappling with high operational costs.

Echoing the same, Rashpal Singh, a local transporter, said, “The earlier system allowed us to manage our cash flow by paying taxes in quarterly installments. The new policy is not feasible for many of us amid rising fuel costs, green tax and maintenance expenses.”

A government official, wishing not to be named, defended the new policy, citing the need for administrative efficiency and enhanced revenue collection.