Punjab: Auto-rickshaw tax structure revised to improve compliance

Punjab: In a bid to bring defaulting auto-rickshaw owners within the tax net, the Punjab transport department has amended the motor vehicle tax for passenger-carrying auto-rickshaws plying in the state. According to officials, many owners pay the annual motor vehicle tax only at the time of registration and do not comply with other requirements, such as wearing a uniform and displaying a name plate with driver details. To regulate auto-rickshaws, especially in urban and semi-urban areas, the department has introduced a revised tax structure. Owners of new vehicles can now opt to pay the tax at Rs 8,100 for four years or Rs 14,400 for eight years, with discounts of 10% and 20%.
The policy will be effective from October 1. For existing three-wheelers, the annual tax has been reduced from Rs 2,800 to Rs 2,250. Alternatively, owners can pay Rs 8,100 for four years. These changes were made through amendments to the Punjab Motor Vehicles Taxation Act, aimed at regulating the largely unregulated auto-rickshaw sector, which has been identified as a significant contributor to road accidents in cities such as Amritsar, Jalandhar, Ludhiana, Patiala, Fatehgarh Sahib and Mohali. Officials admitted that enforcement challenges remain due to the lack of a robust public transport system in these areas. Despite the ban on new diesel or petrol three-wheelers, LPG-powered auto-rickshaws are now prevalent in most cities.