The Punjab cabinet approved on Wednesday a tax exemption of 100 per cent for private buses, a move aimed to support the transport sector amid the novel coronavirus pandemic.
The motor vehicle tax exemption will be for buses and those of educational institutions till December 31, according to a government release.
At a virtual meeting chaired by Chief Minister Amarinder Singh, the cabinet gave post-facto approval to a June notification that exempted these vehicles from the tax till May 19 and extended it till December 31, it said.
A spokesperson of the chief minister’s office said the cabinet also gave ex-post facto approval to a notification reducing motor vehicle tax of buses from Rs 2.80 to Rs 2.69 per km per day.
It further gave ex-post facto approval to another notification of vehicle tax exemption for buses of educational institutions, minibus, maxi cab and three wheelers from March 23-May 19, 2020.
The exemption is expected to cost the state exchequer Rs 66.05 crore.
The cabinet has also approved extension of an amnesty scheme, deferring payment of arrears of taxes without interest and penalty, to March 31 next year, it said.
Under the amnesty scheme, the transporters were liable to pay tax on their vehicles from June 1-30 without any interest and penalty.