Punjab government has offered new incentives on Vehicle Motor Tax to the provincial consumers. Under FY 2020-21 annual budget, the government said citizens can avail 20% rebate by paying their token tax in a lump sum before August 31st, 2020. In his speech, Punjab Finance Minister Makhdoom Hashim Jawan Bakht said if any individual failed to pay the tax within this period, he will not be liable for any penalty, if he pays the amount during the financial year of 2020-21.
The minister further said that a 5% discount will be offered to the consumer if he pays total tax through the e-system. The government said this policy will remain in force till June 30th, 2021.
Ride-Hailing Apps Under Sales Tax Net:
The provincial government has also added ride-hailing apps under the Sales Tax net through the new budget. Previously, these apps were giving a 16% tax under the rent-a-car services category. However, now they have to pay only a 4% tax under the Punjab Sales Act on Services of 2012.
The government has introduced a separate head and special tax rate for the sector. After this inclusion, the total number of services under this tax net has now increased to 69 in Punjab.
Furthermore, the government has revised downward tax collection target to Rs317.1 billion for the current year, compared with Rs380.92 billion for the fiscal year 2019-20. The provincial government took this step due to the impact of COVID-19 pandemic on the business community. The finance bill stated that certain amendments have been tabled to streamline the producers further and enhance facilitation for taxpayers. The government said apart from few changes in penalties; all changes are to facilitate businesses amid ongoing pandemic. The province has also extended electronic invoice initiatives to the maximum number of the service sectors.
