Across states, uniform 6 pc road tax on vehicles soon

Soon, vehicle buyers will have to pay uniform road tax across the country as the states have agreed to impose minimum 6 per cent tax on the sale of vehicles.

In the National Transport Development Council meeting chaired by Union Transport Minister C P Joshi, majority of states have agreed to impose a flat 6 per cent tax on sale price as one-time road tax. This means, though states can impose higher tax, it should not be less than six per cent.

At present, road tax levied by the states varies from 2 per cent to 18 per cent. While some states levy lifelong road tax, annual levies prevail in others. Delhi also charges parking fee as part of tax.

Differences in tax tempt vehicle buyers to go to states with the lowest tax rates. Several states have urged the centre to bring in uniformity in minimum tax slab to ensure their revenue from vehicle tax is not snatched by neighbouring states.
Earlier, a Union Road Transport and Highways Ministry panel had recommended levying flat 6 per cent on sale price as a one-time road tax on cars and taxis, unlike the varying tax slabs at present.

Addressing the meeting, Minister Joshi said that there is an urgent need to rationalise motor vehicle tax in order to make the road transport system hassle-free and enable seamless movement of goods and tourist vehicles.

Streamlining tax

The meeting also discussed the streamlining tax on inter-state movement of commercial cars and taxis on lines similar to private vehicles.

Some states at present collect tax for three to six months even if a vehicle visits the state for three days, causing heavy tax burden. The Centre invited suggestions from states in this regard.

National permit tax hiked by 10 pc

The Union Road Transport Ministry on Monday said the national permit fee for trucks and goods vehicles was hiked by 10 per cent to Rs 16,500 per vehicle annually, following complaints of revenue losses by some states, reports DHNS from New Delhi.
   However, truckers' body All India Motor Transport Congress (AIMTC) said they would oppose the move as it will impact about 20 lakh trucks plying on national permit.

"We have increased the national permit fee for trucks to Rs 16,500 per truck per annum as some states including Jammu & Kashmir, Haryana, Jharkhand, Bihar, Gujarat had said that they were incurring losses under the new system," Road Transport and Highways Minister C P Joshi said.

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