Customers in Punjab will have to pay more for cars, motorcycles and other vehicles with the state government imposing 1 percent social security surcharge on the value of motor vehicles. Besides, the state government also levied 10 percent surcharge on freight charged for transportation of goods, a senior official said here on Thursday.
Both the surcharges are expected to garner revenue of about Rs 300 crore per annum, official further said. The official said 1 percent surcharge has been imposed on the registration of motor vehicles and it will lead to collection of about Rs 200 crore of revenue.
Ten percent surcharge has been imposed on the transportation vehicles wherein tax will be levied on the freight charged for transportation of goods, official further said adding that it would generate Rs 100 crore of revenue.
The surcharges which have been introduced are intended to create a social security fund so as to fund social welfare schemes like old age pension and health insurance scheme, official said. The state government would initially be spending collection from surcharges on meeting expenditure arising out of old age pension and health insurance scheme.
Punjab is annually spending about Rs 1,500 crore on paying pension. While the total cost of annual premium of health insurance scheme --Pradhan Mantri Jan Arogya Yojna (PMJAY)-Ayushman Bharat is pegged at aroundRs 850 crore and state's share is worked out at Rs 350 crore.
The Punjab cabinet had already given its in-principle approval to the implementation of the PMJAY while extending the central scheme to cover over 42 lakh families.
A trust to manage social security funds under the chairmanship of Chief Minister Captain Amarinder Singh has been set up. All the collection from surcharges will be managed by the trust, official further said.
Congress led Punjab government had first announced to bring new social security legislation in the budget in March this year in order to create a dedicated fund to meet its commitment towards weaker sections of the society.
Thereafter, Punjab Social Security Bill, 2018 was enacted. Under this Act, there is a provision for levying social security charges of up to Rs 2 on petrol and diesel, one percent registration of motor vehicles, 10 percent on transportation vehicle, 5 percent on electricity bills and 10 percent on excise duty.
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