Taxi drivers have expressed their approval of the Punjab government’s decision to reduce the tax on registered tourist vehicles. The state government announced the tax reduction during a recent cabinet meeting.
The Azad Taxi Union, representing the taxi operators, had long campaigned against the high tax rates on tourist vehicles in Punjab compared to neighbouring states. They held multiple meetings with transport department representatives to address the issue.
The union highlighted that this was a long-pending demand that has finally been met. Under the new tax regime, tourist buses with over 13 seats will now be charged approximately Rs 42,000 per year, down from the previous rate of around Rs 1,17,000.
Sharanjeet Singh Kalsi, president of the union, stated that they had five meetings with senior officials before the department formed a committee to revise the tax rates. The cabinet has now approved these revised rates. Kalsi noted that Chandigarh charges Rs 200 per seat, Himachal Pradesh Rs 1,000 and Haryana Rs 2,050, while Punjab was previously charging Rs 7,825.
“We had sought to align the tax rate with Chandigarh, but the department adjusted it in line with Haryana,” said Kalsi. Rajinder Singh, general secretary of the union, added, “The state exchequer was suffering a loss due to the higher tax. There are 191 registered vehicles in Punjab with over 13 seats, but only 82 were regularly paying the tax. Many Punjab-based taxi operators were registering their vehicles in Haryana to benefit from the lower tax, resulting in financial gains for Haryana and losses for Punjab.”
Also Read: Investors Disheartened as Government Cancels Gift City Expansion
