Punjab levies taxes on fuels to fund various urban projects

CHANDIGARH: Punjab Government has, on August 6, passed the Punjab Urban Transport Bill, 2019, under which the local bodies would be levying a tax of 10 paise per liter on petrol and diesel in urban areas of Punjab. The decision comes after the state government had reduced the petrol price by Rs 5 a liter and Rs 1 a liter for diesel earlier this year. The new cess increment would be utilised in funding the local government’s ‘City Bus Project’ in Amritsar, Ludhiana, Bathinda, Jalandhar and Patiala. The government has introduced an increase in the surcharge imposed on the registration of new vehicles. This increase in the surcharge would fund its social welfare schemes, including old age pension and health insurance.

Officials said that apart from the cess on fuel and vanity numbers, those retaining old VIP numbers will have to pay a fee between Rs 2,000 and Rs 25,000, depending on whether it was a single digit, double or other number.

Brahm Mohindra, Local Bodies Minister said it was a “nominal” 10 paise cess and “won’t burden the consumer much”.

The government is also looking forward to establish a panel ‘Punjab Urban Transport Fund Management Committee’ to look into the utilisation of the extra foods generated.

Punjab government is looking forward to accelerate urban transport development and tackle problems such as growing traffic and parking congestion and road mishaps.