With surcharge on registration, vehicles to get costlier in Punjab
Chandigarh, November 15
Eight months after the cash-strapped Punjab Government announced the imposition of social security tax, surcharge has been imposed on registration of motor vehicles and transportation of goods. A notification on charging 1 per cent social security surcharge on new vehicles at the time of registration and a 10 per cent on freight for transportation of goods has been issued.
These surcharges will help the government garner Rs 300 crore annually. It is expected to use the money for social security plans.
The surcharge on the sale of retail fuels (50 paisa per litre on sale of petrol and Re 1 per litre on sale of diesel) will not be imposed immediately. This is being held back as oil prices have sky-rocketed and the state government has refused a cut on existing taxes on fuels whereas neighbouring states have already done so. Initial estimates by the Finance Department put the collection of surcharge on fuel at Rs 400 crore annually.
Sources said Rs 200 crore would be collected as surcharge on vehicles and Rs 100 crore on freight. Together, the new taxes would help the state fund its four social security pensions as well as increase the reach of the Pradhan Mantri Jan Arogya Yojana.
The state will have to contribute Rs 350 crore as premium on the health cover annually. The social security tax will help fund this premium.