Vehicle Road Tax & Charges in Punjab

Know all about VAHAN/Parivahan Tax & RTO Charges in Punjab

Are you looking to invest in a car or bike? Before doing so, make sure that you consider the cost of owning such vehicles. From fuel to insurance premiums, motorised cars or bikes come bearing several additional expenses besides their price tag. Punjab road tax is another such expense, which you may fail to consider when buying your first two-wheeler or four-wheeler.

But what could a road tax be? Why do you need to pay for it?

Before ascertaining your road tax liabilities, you would first need to determine what such taxes entail.

The state government of Punjab charges road taxes from its residents who own motorised vehicles. This taxed amount is utilised for the upkeep of roads, ensuring safe and efficient driving conditions.

Additionally, the same amount is also utilised to keep travellers secure as they traverse through Punjab roads.

Almost all vehicle owners need to service these taxes, as levied by the state authorities. The Motor Vehicles Act of 1988 is responsible for the collection and regulation of these taxes. However, provisions under the Motor Vehicles Taxation Act of 1924 determine the tax rates.

How Road Tax is Calculated in Punjab?

RTO tax Punjab is calculated using several associated factors, such as:

• Age
  
• Cost
  
• Usage purpose
  
• Engine capacity
  

Read on to know more about Punjab road tax slab!

The following categories determine the border tax applicable on vehicles registered in other states passing through Punjab -

• Motor Car, Tractor or Omnibus – Any such vehicle with a seating capacity of up to 10 passengers, excluding the driver, is liable to pay Rs.200 as border tax. Keep in mind that three-wheeled vehicles are not taxed under this system.
• Any Other Type of Motor Vehicles – For all other motorised vehicles passing through Punjab, taxes amounting to Rs.1500 would be applicable. 

Every vehicle owner must pay road taxes in Punjab during its registration. However, if one fails to do the same, it can lead to hefty penalties, ranging between Rs.1000 and Rs.5000. In severe cases, the state authorities can also confiscate your vehicle’s important documents. Thus, make sure to clear RTO tax Punjab at the earliest.

Follow the steps mentioned below to complete your road tax liability payment online. This is the faster method, often saving considerable amounts of time:

• Step 1: Visit the official portal for Punjab Transport.
• Step 2: Next, choose the ‘Online Motor Vehicle Payment System to proceed.
• Step 3: Enter your ID and password to login to this portal.
• Step 4: Alternatively, new users of this portal can select the appropriate option to initiate an account.
• Step 5: Provide all of the necessary details, as per the instruction on your screen.
• Step 6: Individuals can next choose their preferred mode of road tax payment from options, such as debit card, internet banking and credit card.
• Step 7: Once tax payment is complete, save the tax receipt for future reference and need.

Individuals who are not competent with this online payment system can also visit one of the local RTOs to clear tax liabilities.