Auto-rickshaw tax structure revised to improve compliance

To bring defaulting auto-rickshaw owners into the tax net, the Punjab Transport Department has revised the motor vehicle tax for passenger-carrying auto-rickshaws operating 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 further requirements, such as wearing uniforms and displaying name plates 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 for four years at Rs 8,100, or for eight years at Rs 14,400, with a rebate of 10% and 20%, respectively. This 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, aiming to regulate the largely unregulated auto-rickshaw sector, which has been identified as a significant contributor to road accidents in cities like Amritsar, Jalandhar, Ludhiana, Patiala, Fatehgarh Sahib, and Mohali.

Officials acknowledge that enforcement challenges persist due to the lack of a robust public transport system in these areas. Despite a ban on new diesel or petrol three-wheelers, LPG-driven auto-rickshaws are now prevalent in most cities.